What is the authority of a managing general agent typically defined by?

The authority of a managing general agent is typically defined by state statutes outlining their responsibilities. This is due to the fact that managing general agents operate under specific legal frameworks that vary by state, which dictate the scope of their authority, responsibilities, and regulatory requirements. These statutes ensure that managing general agents adhere to the laws pertaining to the insurance industry, which include licensing, fiduciary duties, and operational standards.

While national insurance regulations may impact the overall insurance environment, they do not specifically define the authority of managing general agents, as this is largely a state-level concern. The option referencing company-specific guidelines alone lacks the necessary legal framework that defines an agent's authority, making it insufficient on its own. Additionally, contracts issued by insurance policies focus more on specific agreements between the insurer and the policyholder rather than defining the general authority of agents. Thus, the correct answer encapsulates the legal and regulatory backdrop essential for understanding the managing general agent’s role in the insurance industry.