Which party may operate between a managing general agent and an insurer to provide capacity?

The role of a managing general underwriter (MGU) is essential in the relationship between managing general agents (MGAs) and insurers. An MGU acts as an intermediary entity that has the authority to underwrite insurance on behalf of an insurer. They typically possess binding authority and can help insurers to expand capacity and manage risk by underwriting policies and assuming some level of risk.

In this context, the MGU’s ability to provide capacity means they can facilitate the underwriting process, allowing MGAs to effectively place business with insurers. This relationship is critical in the complex landscape of insurance where MGAs often need additional underwriting authority and capacity to cater to specific market segments or risks efficiently.

The other options do not fit this specific role directly. A claims adjuster is responsible for evaluating claims and determining the payout, which does not involve negotiating capacity. An insurance broker acts primarily as an intermediary between the insurer and the insured, rather than between a managing general agent and an insurer. Lastly, an underwriting syndicate is a group of insurers that come together to underwrite insurance, but this term typically applies more to the reinsurance market or specific risk pools rather than directly facilitating capacity for an MGA. Thus, the managing general underwriter is the correct choice for illustrating the