Section 8-201 - Definitions. - Maryland Statutes

§ 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.]