38.2-1358 - Definitions.
§ 38.2-1358. Definitions.
As used in this article:
"Actuary" means a person who is a member in good standing of the AmericanAcademy of Actuaries.
"Business entity" means a partnership, limited partnership, limitedliability company, corporation, or other legal entity that is entitled tohold property in its own name and which is not a sole proprietorship.
"Insurer" means any person, duly licensed in the Commonwealth pursuant toChapters 10 (§ 38.2-1000 et seq.), 11 (§ 38.2-1100 et seq.), 12 (§ 38.2-1200et seq.), 25 (§ 38.2-2500 et seq.), 26 (§ 38.2-2600 et seq.), 38 (§ 38.2-3800et seq.) through 46 (§ 38.2-4600 et seq.), or 51 (§ 38.2-5100 et seq.) ofthis title.
"Managing general agent" means any person who manages all or part of theinsurance business of an insurer, including the management of a separatedivision, department or underwriting office; and who acts as an agent forsuch insurer whether known as a managing general agent, manager or othersimilar term, who, with or without the authority, either separately ortogether with affiliates, produces, directly or indirectly, and underwritesan amount of gross direct written premium equal to or exceeding five percentof the surplus to policyholders of the insurer as reported in the last annualstatement of the insurer in any one quarter or year together with one or moreof the following: (i) adjusts or pays claims in excess of an amountdetermined by the Commission or (ii) negotiates reinsurance on behalf of theinsurer.
Notwithstanding the above, the following persons shall not be considered asmanaging general agents for the purposes of this article:
1. An employee of the insurer;
2. A United States manager of the United States branch of an alien insurer;
3. An underwriting manager who, pursuant to contract, manages all or part ofthe insurance operations of the insurer, is under common control with theinsurer, subject to Article 5 (§ 38.2-1322 et seq.) of this chapter orArticle 2 (§ 38.2-4230 et seq.) of Chapter 42 of this title, and whosecompensation is not based on the volume of premiums written; or
4. The attorney-in-fact authorized by and acting for the subscribers of areciprocal insurer.
"Qualified United States financial institution" means an institution that:
1. Is organized or, in the case of a United States office of a foreignbanking organization, licensed, under the laws of the United States or anystate thereof;
2. Is regulated, supervised and examined by United States federal or stateauthorities having regulatory authority over banks and trust companies; and
3. Has been determined by either the Commission, or the Securities ValuationOffice of the National Association of Insurance Commissioners, to meet suchstandards of financial condition and standing as are considered necessary andappropriate to regulate the quality of financial institutions whose lettersof credit will be acceptable to the Commission.
"Underwrite" means the authority to accept or reject risk on behalf of theinsurer.
(2001, c. 706.)