20-311
|
20-311. Definition of managing general agent; exceptions; adjustment or payment of claims A. In this article, unless the context otherwise requires, "managing general agent" means any person, firm, association or corporation that negotiates and binds ceding reinsurance contracts on behalf of an insurer or that manages all or part of the insurance business of an insurer, including the management of a separate division, department or underwriting office, that acts as an insurance producer or agent for the insurer and that, with or without authority and either separately or together with affiliates, directly or indirectly produces and underwrites an amount of gross direct written premium that is at least five per cent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year and that either: 1. Engages in the adjustment or payment of claims. 2. Negotiates reinsurance on behalf of the insurer. B. Notwithstanding subsection A of this section, for the purposes of this article the following persons are not managing general agents: 1. An employee of the insurer. 2. A United States manager of the United States branch of an alien insurer. 3. An underwriting manager who, pursuant to contract, manages all of the insurance operations of the insurer other than those operations that are managed by the insurer, who is under common control with the insurer, subject to the holding company regulatory act, and whose compensation is not based on the volume of premiums written. 4. The attorney-in-fact who is authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney. 5. A reinsurance intermediary broker or a reinsurance intermediary manager as defined in section 20-486, who provides administrative services for an insurer and whose compensation consists only of remuneration not related directly or indirectly to direct written premium. For the purposes of this paragraph reinsurance commissions shall not be considered remuneration related to direct written premium. C. The director shall establish by rule the dollar amount of adjusted or paid claims that constitutes engaging in the adjustment or payment of claims. |