Is MGA And GAINSCO The Same Company?

GAINSCO’s insurance company subsidiary is MGA Insurance Company, Inc. , which sells auto insurance policies under its brand name, GAINSCO Auto Insurance®.

Who owns GAINSCO?

BLOOMINGTON, Ill., December 31, 2020 – In September, State Farm Mutual Automobile Insurance Company announced an agreement to acquire non-standard auto insurer GAINSCO for approximately $400 million in cash.

Is GAINSCO a real insurance company?

Headquartered in Dallas, Gainsco specializes in nonstandard auto insurance for high-risk drivers. It sells policies through comparison websites and a network of independent agents in the states it services. Gainsco was acquired by State Farm, the largest auto insurer in the country, in late 2020.

What is mga auto insurance?

Managing General Agent (MGA), a specialized type of insurance agent/broker that, unlike traditional agents/brokers, is vested with underwriting authority from an insurer.

Is GAINSCO out of business?

GAINSCO will continue to operate as a separate company and brand with continued focus on its current objectives. Over time, the parties expect to provide State Farm agents the opportunity to distribute GAINSCO products in addition to State Farm products and services.

Who bought out State Farm insurance?

Levis, Quebec, November 21, 2017 — In January 2015, Desjardins Group the leading cooperative financial group in Canada with over $276 billion in assets completed the purchase of State Farm Canadian property and casualty and life insurance operations, as well as its mutual fund, loan and living benefits companies.

What states does GAINSCO operate in?

GAINSCO, founded in 1978, specializes in minimum-limits personal auto coverage and actively distributes its nonstandard personal auto products through independent retail agents in Arizona, Florida, Georgia, new mexico, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, Ohio and Alabama.

What is going on with Gainsco insurance?

State Farm® Closes Purchase of GAINSCO BLOOMINGTON, Ill., December 31, 2020 – In September, State Farm Mutual Automobile Insurance Company announced an agreement to acquire non-standard auto insurer GAINSCO for approximately $400 million in cash. The transaction closed on Dec. 31.

Does gainsco have a grace period?

If the appropriate renewal payment is not paid and mailed (U.S. Postal Postmark) by the expiration date of the six-month policy term, coverage will expire on the final day (expiration date) of the current policy term ( there is no grace period ).

What is the difference between an MGA and insurance company?

While MGAs fall under the wholesale category, they are different in that they’re an intermediary between retail brokers and insurers MGAs usually specialize in specific markets or products and act on behalf of and in the interest of insurers. Their fiduciary duty is to the insurer, not the customer.

What is the difference between a broker and an MGA?

An MGA is similar to an insurance broker but is a bit more specialized. The MGA is granted underwriting power by an insurance company, whereas regular brokers do not have this privilege Thus, an MGA has more power than a broker and can even assign new agents or brokers in retail insurance offices.

How many MGAs are there in the US?

As a result, premium growth opportunities in the United States have been plentiful for MGAs. The increase in U.S. MGA-generated premium to $44 billion in 2019 is tied in part to the growth in the number of MGAs, which rose to 688 in 2019 , compared with 577 in 2017.

How many employees does GAINSCO have?

Based in Dallas, TX, GAINSCO is a medium-sized finance company with 600 employees and a revenue of $253.8M.

Does GAINSCO have an app?

Using the GAINSCO Quick Estimate App is fast and easy! It allows you to quickly upload the photos of your damaged vehicle and receive an estimate for your claim. The App guides you through the process in just a few simple steps. Get the GAINSCO Quick Estimate App today!.

How do I cancel my GAINSCO insurance?

If you have any questions or need help, text HELP to (52928), or call 1-866-GAINSCO. To stop receiving text messages, text STOP, STOP ALL, END, QUIT, CANCEL, UNSUBSCRIBE, or ARRET to (52928).