§ 27-51-2 - Definitions. - Rhode Island Statutes

SECTION 27-51-2

   § 27-51-2  Definitions. – As used in this chapter:

   (1) "Actuary" means a person who is a member in good standingof the American Academy of Actuaries;

   (2) "Insurer" means any person, firm, association, orcorporation duly licensed in this state as an insurance company pursuant tothis title;

   (3) "Managing general agent" (MGA) means any person, firm,association, or corporation who negotiates and binds ceding reinsurancecontracts on behalf of an insurer or manages all or part of the insurancebusiness of an insurer, including the management of a separate division,department, or underwriting office, and acts as an agent for the insurerwhether known as a managing general agent, manager 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 directwritten premium equal to or more than five percent (5%) of the policyholdersurplus as reported in the last annual statement of the insurer in any onequarter or year together with one or more of the following: (A) adjusts or paysclaims in excess of an amount determined by the insurance commissioner or (B)negotiates reinsurance on behalf of the insurer;

   (ii) Notwithstanding paragraph (i) of this subdivision, thefollowing persons shall not be considered as MGAs for the purposes of thischapter:

   (A) An employee of the insurer;

   (B) A U.S. manager of the United States branch of an alieninsurer;

   (C) An underwriting manager which, pursuant to contract,manages all or part of the insurance operations of the insurer, is under commoncontrol with the insurer, subject to the holding company regulatory act, andwhose compensation is not based on the volume of premiums written withoutregard to the profitability of the business written; and

   (D) An attorney in fact authorized by and acting for thesubscribers of a reciprocal insurer or interinsurance exchange under powers ofattorney,

   (4) "Producer" means insurance producer as defined in chapter2.4 of this title; and

   (5) "Underwrite" means the authority to accept or reject riskon behalf of the insurer.