56-6-502 - Part definitions.
56-6-502. Part definitions.
As used in this part, unless the context otherwise requires:
(1) Actuary means a person who is a member in good standing of the American Academy of Actuaries;
(2) Insurer means any person, firm, association or corporation duly licensed in this state as an insurance company pursuant to § 56-2-102;
(3) (A) Managing general agent (MGA) means any person, firm, association or corporation that negotiates and binds ceding reinsurance contracts on behalf of an insurer or 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 the insurer, whether known as an MGA, 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 equal to or more than five percent (5%) of the total policyholder surplus as reported in the last annual statement of the insurer in any one (1) quarter or year, together with one (1) or more of the following:
(i) Adjusts or pays claims in excess of an amount determined by rule by the commissioner; or
(ii) Negotiates reinsurance on behalf of the insurer;
(B) Notwithstanding subdivision (3)(A), the following persons shall not be considered as MGAs for the purposes of this part:
(i) An employee of the insurer;
(ii) A United States manager of the United States branch of an alien insurer;
(iii) An underwriting manager that, pursuant to contract, manages all the insurance operations of the insurer, is under common control with the insurer, subject to the Insurance Holding Company System Act of 1986, compiled in chapter 11 of this title, and whose compensation is not based on the volume of premiums written; and
(iv) The attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney; and
(4) Underwrite means the authority to accept or reject risk on behalf of the insurer.
[Acts 1991, ch. 142, § 7; 1992, ch. 768, § 1.]