Sec. 38a-90a. Definitions.
Sec. 38a-90a. Definitions. As used in sections 38a-90 to 38a-90h, inclusive:
(a) "Actuary" means a person who is a member in good standing of the American
Academy of Actuaries.
(b) "Managing general agent" means any person, firm, association or corporation
who manages all or part of the insurance business of an insurer, including the management of a separate division, department or underwriting office and acts as an agent for
such insurer whether known as a managing general agent, manager or other similar term,
who, with or without the authority, either separately or together with affiliates, produces,
directly or indirectly, and underwrites an amount of gross direct written premium which
is equal to or more than five per cent of the policyholder surplus as reported in the last
annual statement of the insurer in any one quarter or year together with one or more of
the following activities related to the business produced: (1) Adjusts or pays claims in
excess of an amount determined by the commissioner, or (2) negotiates reinsurance on
behalf of the insurer. Notwithstanding the above, the following persons shall not be
considered as managing general agents for the purposes of sections 38a-90 to 38a-90h,
inclusive: (A) Any employee of the insurer; (B) a United States manager of the United
States branch of an alien insurer, as defined in section 38a-1; (C) an underwriting manager which, pursuant to contract, manages all or part of the insurance operations of the
insurer, 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; and (D) the attorney-in-fact authorized by and acting for the subscribers of a
reciprocal insurer or interinsurance exchange under powers of attorney.
(c) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
(P.A. 91-262, S. 11, 19; P.A. 93-57, S. 3; 93-239, S. 19; P.A. 94-39, S. 2.)
History: P.A. 93-57 redefined "managing general agent" to eliminate the requirement of negotiating and finding ceding
reinsurance contracts on behalf of an insurer and certain technical corrections for clarity; P.A. 93-239 redefined "managing
general agent" to require only 5% of the policyholder surplus in lieu of 10% and to delete a provision excluding managers
of insurers engaging in joint underwriting or joint reinsurance from consideration as managing general agents; P.A. 94-39 redefined "managing general agent" to specifically exclude attorneys-in-fact authorized by and acting for the subscribers
of a reciprocal insurer or interinsurance exchange under powers of attorney.