As used in this chapter:
(1) "Actuary" means a person who is a member in good standing of the American Academy of Actuaries.
(2) "Insurer" means a domestic insurer as defined in Section 38-1-20(17).
(3)(a) "Managing general agent", MGA, means a person who:
(i) manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office; and
(ii) acts as an agent for the insurer whether known as a MGA, a manager, or another 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 one quarter or year with one or both of the following activities related to the business produced:
a. adjusts or pays claims in excess of five thousand dollars;
b. negotiates ceding reinsurance contracts on behalf of the insurer.
(b) Notwithstanding subitem (a), the following are not considered as MGAs for the purposes of this chapter:
(i) an employee of the insurer;
(ii) a United States manager of the United States branch of an alien insurer;
(iii) 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, and is subject to the Insurance Holding Company Regulatory Act and whose compensation is not based on the volume of premiums written;
(iv) the attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney;
(4) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
HISTORY: 1992 Act No. 363, Section 1, eff December 31, 1992; 2004 Act No. 291, Section 10, eff July 29, 2004.