As used in the Managing General Agents Law:
A. "actuary" means a person who is a member in good standing of the American academy of actuaries;
B. "insurer" means any person, firm, association or corporation duly authorized in this state pursuant to the Insurance Code to transact the business of insurance;
C. "managing general agent" means any person, firm, association or corporation who:
(1) manages all or part of the insurance business of an insurer, including the management of a separate division, department or underwriting office;
(2) acts as an insurance producer 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 equal to or more than five percent 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:
(a) adjusts or pays claims in excess of an amount determined by the superintendent; or
(b) negotiates reinsurance on behalf of the insurer; and
(3) notwithstanding the above, the following persons shall not be considered as managing general agents for the purposes of the Managing General Agents Law:
(a) an employee of the insurer;
(b) a United States manager of the United States branch of an alien insurer;
(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 Insurance Holding Company Law [Chapter 59A, Article 37 NMSA 1978], 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 inter-insurance exchange under powers of attorney; and
D. "underwrite" means the authority to accept or reject risk on behalf of the insurer.
History: 1978 Comp., § 59A-12B-2, enacted by Laws 1993, ch. 320, § 28; 2016, ch. 89, § 51.
ANNOTATIONSThe 2016 amendment, effective July 1, 2017, in Subsection C, Paragraph (2), after "acts as an", deleted "agent" and added "insurance producer".
Severability. — Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.