Maryland Code, INSURANCE 8-201
Terms Used In Maryland Code, INSURANCE 8-201
- Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
- Contract: A legal written agreement that becomes binding when signed.
- including: means includes or including by way of illustration and not by way of limitation. See
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
(b) “Certificate of qualification” means a certificate of qualification issued by the Commissioner to act as a 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.
(d) “Underwrite” means to accept or reject risks for an insurer.