Managing MGA Business in Momentum AMS

Understanding the MGA Workflow

When your agency is acting as an MGA, there are typically three parties involved:

• Insured – The individual or business ultimately covered by the policy.
• Retail Agent/Broker – The agency working directly with the insured.
• MGA – Your agency, which works with the retail agent and carrier.

The insured and policy are still entered and managed in Momentum AMS using the normal workflow.

The key difference is that the retail agent is set up as a company rather than as an individual agent.

This allows the retail agency to be associated with the business while supporting the broker billing and commission workflow.

Direct Bill Policies

For Direct Bill business, the process is generally the same as it would be for a retail agency.

The carrier handles the premium billing, so there is no separate MGA broker-billing workflow required for collecting the premium.

Continue to enter and manage the insured, policy, commissions, documents, and other policy information using your normal Momentum AMS processes.

Agency-Billed Business

The workflow changes when the policy is agency billed.

In a traditional retail agency workflow, the agency may generate an invoice for the insured.

When operating as an MGA, the retail agent or broker is responsible for billing the insured. Therefore, the MGA does not generate an Insured Invoice for the premium being collected by the retail agency.

Instead, the MGA bills the retail agent or broker.

Broker Billing

From the policy, select:

Documents> Broker Invoices/Receipts

Use Broker Invoices/Receipts to create and manage the amount owed by the retail agent or broker.

The broker is billed net of the retail agent's commission.

Example

Assume a policy has:

• Premium: $10,000
• Retail Agent Commission: $1,500
• Amount Due from Broker: $8,500

The retail agent handles its billing relationship with the insured.

The MGA's receivable is the $8,500 net amount due from the broker, rather than a $10,000 invoice to the insured followed by a separate $1,500 commission payment.

Agent Commission Reconciliation

With broker-billed business, the retail agent's commission is reconciled as part of the Broker Invoice process.

This is similar conceptually to issuing payment to a carrier net of commission.

Rather than:

1. Billing the insured for the full amount, and
2. Paying the retail agent's commission separately,

the broker invoice accounts for the commission and determines the net amount owed to the MGA.

This keeps the accounting aligned with the actual flow of funds between the insured, retail agent, MGA, and carrier.

Carrier Payables

Carrier payments continue to follow the normal Momentum AMS accounting workflow.

When applicable, the amount issued to the carrier is based on the amount owed to the carrier after the MGA's commission is accounted for.

The result is a workflow where each side of the transaction reflects the appropriate net amount:

Insured → Retail Agent/Broker → MGA → Carrier

The retail agent manages the insured-facing billing, while the MGA manages the broker receivable and carrier payable.

What Stays the Same?

Most Momentum AMS functionality does not change simply because your agency operates as an MGA.

You can continue using the standard workflows for:

• Insureds
• Prospects
• Policies and Quotes
• Endorsements
• Renewals
• Documents
• ACORD Forms
• Certificates
• Tasks
• Service Requests
• Carrier Downloads
• Reporting

The primary differences are the retail agent setup and the broker billing/accounting workflow.

Best Practices

• Set up the retail agent or broker as a company when managing MGA business.
• Associate the appropriate agent/broker with the policy.
• Do not create an Insured Invoice when the retail agent is responsible for billing the insured.
• Use Broker Invoices/Receipts for amounts owed by the retail agent or broker.
• Verify the retail agent's commission before completing the broker invoice.
• Confirm that the broker receivable and carrier payable reflect the correct net amounts before completing reconciliation.

Summary

Momentum AMS supports MGA workflows without requiring a completely separate policy-management process.

For MGA business, remember the two primary differences:

1. The retail agent/broker is established as a company rather than an individual agent.
2. For agency-billed business, use Broker Invoices/Receipts instead of billing the insured directly.

The retail agent's commission is incorporated into the broker billing process so the amount due to the MGA reflects the appropriate net commission. Carrier payments can then be handled through the normal payable workflow.

For Direct Bill business, the workflow remains largely the same as the standard Momentum AMS process.