CoverWallet: An MGA or Not?

A technology-driven insurance company, CoverWallet provides small companies with specialized insurance options. Since its establishment in 2015, the business has built a reputation as a top supplier of small business insurance plans. But a frequent query is whether or not CoverWallet is an MGA, or managing general agent.

It’s crucial to comprehend what an MGA is in order to provide a response to this query. A third-party insurance agent known as an MGA is qualified to write and bind insurance contracts on behalf of insurance companies. In essence, an MGA serves as a go-between for the carrier and the insured, managing administrative duties related to policy administration and underwriting while the carrier assumes risk.

Therefore, the answer is that yes, CoverWallet is an MGA. The business offers products to small businesses through partnerships with several A-rated insurance providers as an authorized insurance agent. As an MGA, CoverWallet is able to underwrite policies and bind coverage on behalf of these carriers thanks to its technological platform.

What is meant by the phrase “100 minimum earned premium” is another related query. Some insurance companies have a rule that a policy must first earn a certain amount of money from premiums before it is deemed fully earned. For instance, if a policy has a minimum earned premium of $100 and the premium is $500, the carrier would only include $400 of that amount as earned premium until the policy generates an additional $100 in premium income.

In addition, the phrase “grace period” in the context of insurance designates the time frame following the due date for a premium payment but preceding the policy’s cancellation due to non-payment. The insurance is still in effect and the insured has time to make the payment without being penalized during the grace period. States and insurance companies have different requirements for grace periods, and some states require that a grace period be provided by law.

Another query is if Hiscox is a legitimate business. An international insurance provider with a focus on small company insurance is called Hiscox. The organization, which has offices in 14 countries and has been in existence since 1901, offers insurance solutions to companies of all sizes. A.M. Best has given Hiscox an A rating, suggesting that the company is financially stable and able to cover claims.

It’s important to note that Hiscox is not an MGA in closing. Instead, the business acts as a carrier, assuming the risk of the insurance policies it offers. Comparatively, CoverWallet functions as an MGA, binding policies on behalf of carriers and serving as a go-between for the insured and the carrier.

In conclusion, CoverWallet is an MGA that offers small business insurance plans through partnerships with carriers. As a middleman between the carrier and the insured, the company can underwrite and bind coverage on behalf of its carrier partners thanks to its technological platform. The risk for the insurance products Hiscox issues is underwritten and assumed by the company, which has an A rating from A.M. Best.