Who facilitates business between agents, their clients, and insurers?

• A. Insurance broker
• B. Underwriter
• C. Managing general agent (MGA)
• D. Claims adjuster

Answer: (C)

The idea being tested is how distribution and authority work in insurance. A managing general agent (MGA) serves as a bridge between insurers and the agents who bring in clients. An MGA operates under contract with one or more insurers and often has delegated underwriting, binding, and policy-issue authority for a defined set of products. This means the MGA can review submissions from agents, issue quotes or bind coverage, and manage policy administration on behalf of the insurer. In practice, agents rely on the MGA to access insurer products, get timely authorizations, and handle much of the administrative side of placing business, while the insurer relies on the MGA to extend market reach and maintain consistent underwriting standards. Clients benefit from a more streamlined process and access to a broader range of products through the agents.

The other roles don’t fit as the facilitator here: a broker represents the client and places coverage with carriers but doesn’t typically have binding authority from insurers; an underwriter works for the insurer to assess risk and decide whether to accept a risk and at what price; a claims adjuster handles claims after a loss.