Section 8-201 - Definitions.
§ 8-201. Definitions.
(a) In general.- In this subtitle the following words have the meanings indicated.
Revisor's Note.
This subsection formerly was the introductory language of Art. 48A, § 665.
The only changes are in style.
(b) Certificate of qualification.- "Certificate of qualification" means a certificate of qualification issued by the Commissioner to act as a managing general agent.
Revisor's Note.
This subsection is new language added to avoid repetition of the phrase "certificate of qualification issued by the Commissioner to act as a managing general agent".
Defined Terms.
"Commissioner" § 1-101
"Managing general agent" § 8-201
(c) Managing general agent.-
(1) "Managing general agent" means a person:
(i) that:
1. manages all or part of the insurance business of an insurer, including the management of a separate division, department, office, or subsidiary of the insurer; and
2. with or without authority, separately or with affiliates, directly or indirectly produces or underwrites gross direct written premiums at least equal to 5% of the insurer's policyholder surplus for any quarter or year, as reported in the insurer's most recently filed quarterly report or annual statement; and
(ii) that:
1. negotiates or binds ceding reinsurance contracts for the insurer;
2. adjusts or pays claims of more than $500; or
3. maintains loss reserves from which claims may be paid.
(2) "Managing general agent" does not include:
(i) an employee of the insurer;
(ii) a United States manager of the United States branch of an alien insurer;
(iii) an attorney in fact authorized by and acting for the subscribers of a reciprocal insurer under a power of attorney;
(iv) an authorized insurance producer acting for a surety insurer that engages exclusively in the business of issuing bail bonds; or
(v) an underwriting manager that, by contract:
1. manages all the insurance operations of the insurer;
2. is under common control with the insurer and is subject to Title 7, Subtitle 6 of this article; and
3. is not compensated based on the volume of premiums written.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 665(2).
In paragraph (2)(iii) of this subsection, the former reference to an "interinsurance exchange" is deleted as included in the defined term "reciprocal insurer".
Defined Terms.
"Alien insurer" § 1-101
"Insurance" § 1-101
"Insurance business" § 1-101
"Insurer" § 1-101
"Person" § 1-101
"Premium" § 1-101
"Reciprocal insurer" § 1-101
"Reinsurance" § 1-101
"Underwrite" § 8-201
(d) Underwrite.- "Underwrite" means to accept or reject risks for an insurer.
Revisor's Note.
This subsection is new language derived without substantive change from former Art. 48A, § 665(3).
The former reference to "the authority" to accept or reject risks is deleted as surplusage.
Defined Terms.
"Insurer" § 1-101
[An. Code 1957, art. 48A, § 665; 1995, ch. 36; 2001, ch. 731, § 1.]