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§ 8-201. Definitions

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 8. Entities that Act as Insurers
Subtitle 2. Managing General Agents (Refs & Annos)
MD Code, Insurance, § 8-201
§ 8-201. Definitions
Currentness
In general
(a) In this subtitle the following words have the meanings indicated.
Certificate of qualification
(b) “Certificate of qualification” means a certificate of qualification issued by the Commissioner to act as a managing general agent.
Managing general agent
(c)(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.
Underwrite
(d) “Underwrite” means to accept or reject risks for an insurer.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2001, c. 731, § 1, eff. July 2, 2001.
Formerly Art. 48A, § 665.
MD Code, Insurance, § 8-201, MD INSURANCE § 8-201
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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