How to record MGA sub-delegation fees
Records the fee income earned by an MGA for delegating specific underwriting authorities to a sub-agent or smaller firm.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash at Bank (Operating) | Asset | 5,000.00 | - |
| MGA Delegation Fee Income | Revenue | - | 5,000.00 |
💡 Accountant's Note
Debit the operating bank account for the fee received and credit the specific revenue account for delegation or facility fees.
Practitioner & Systems Framework
💻 ERP Architecture
Set up a non-premium product code in the agency management system to track these service-based fees.
⚠️ Audit Flags
Verification of the delegation agreement and proof of transfer of underwriting authority.
📄 Required Documentation
Sub-delegation agreement and signed fee schedule.
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Expert Analysis by Qusai Ahmad
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Discussion & Community Questions
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