Ch. 36

1995 LAWS OF MARYLAND

(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 AGENT 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).

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