(a) In this subtitle the following words have the meanings indicated.
(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.