As used in this part, unless the context otherwise requires:
(1) “Actuary” means a person who is a member in good standing of the American Academy of Actuaries;
(2) “Insurer” means any person, firm, association or corporation duly licensed in this state as an insurance company pursuant to § 56-2-102;
(3) “Managing general agent” or “MGA” means any person who: Manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office; and
(4) Acts as an agent for such insurer, whether known as a MGA, manager, or other similar term, and who, with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent (5%) of the policyholder surplus in any one (1) quarter or year, as reported in the last annual statement of the insurer, and, related to the business produced, either:
(5) Adjusts or pays claims in excess of ten thousand dollars ($10,000) per claim; or
(6) Negotiates reinsurance on behalf of the insurer;
Notwithstanding subdivision (3)(A), the following persons shall not be considered as MGAs for the purposes of this part:
An employee of the insurer;
A United States manager of the United States branch of an alien insurer;
An underwriting manager that, pursuant to contract, manages all the insurance operations of the insurer, is under common control with the insurer, subject to the Insurance Holding Company System Act of 1986, compiled in chapter 11 of this title, and whose compensation is not based on the volume of premiums written; and
The attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney; and
“Underwrite” means the authority to accept or reject risk on behalf of the insurer.