§ 322.1. Definitions
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. Insurance
40 P.S. § 322.1
§ 322.1. Definitions
The following words and phrases when used in this article shall have, unless the context clearly indicates otherwise, the meanings given to them in this section:
“Actuary” means an individual who is a member in good standing of the American Academy of Actuaries.
“Commissioner” means the Insurance Commissioner of the Commonwealth.
“Department” means the Insurance Department of the Commonwealth.
“Insurer” means any company, association or exchange authorized by the Insurance Commissioner to transact the business of insurance in this Commonwealth, except that it shall not include agencies, authorities or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia or a state or political subdivision of a state.
“Managing general agent” or “MGA” means:
(1) Any person, firm, association or corporation who negotiates and binds ceding reinsurance contracts on behalf of an insurer or manages all or part of the insurance business of an insurer, including the management of a separate division, department or underwriting office, and acts as an agent for such insurer whether known as a managing general agent 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 per centum 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:
(iii) an underwriting manager which, pursuant to contract, manages all the insurance operations of the insurer, is under common control with the insurer, subject to Article XII of the act of May 17, 1921 (P.L. 682, No. 284),1 known as “The Insurance Company Law of 1921,” and whose compensation is not based on the volume of premiums written;
(v) any manager or exclusive general agent operating under any management contract or exclusive general agency agreement entered into prior to December 22, 1965, and therefor not subject to licensing pursuant to section 651:2 Provided, however, That any such management contract or exclusive general agency agreement shall subject the manager or exclusive general agent and the insurer to Article XII of the act of May 17, 1921 (P.L. 682, No. 284), known as “The Insurance Company Law of 1921”: And further provided, That any sale, assignment or transfer of any management contract or exclusive general agency agreement, whether said contract or agreement was entered into before or after December 22, 1965, shall make the purchaser, assignee or transferee subject to licensing under this article.
“Underwrite” means the authority to accept or reject risk on behalf of the insurer.
Credits
1921, May 17, P.L. 789, No. 285, art. VIII, § 801, added 1992, Dec. 18, P.L. 1496, No. 177, § 12, effective in 120 days. Amended 1994, Feb. 17, P.L. 79, No. 8, § 8, imd. effective.
40 P.S. § 322.1, PA ST 40 P.S. § 322.1
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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