2006 Louisiana Laws - RS 22:1202 — Definitions

§1202.  Definitions

A.  "Actuary" means a person who is a member in good standing of the American Academy of Actuaries.

B.  "Commissioner" means the commissioner of insurance of this state.

C.  "Insurer" means any person, firm, association, or corporation duly licensed in this state as an insurer pursuant to this Chapter.

D.(1)  "Managing General Agent" (MGA) means any person, firm, association, or corporation who manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office, and acts as an agent for such insurer whether 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 direct written premium equal to or more than five percent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year together with one or more of the following:

(a)  Adjusts or pays claims in excess of an amount determined by the commissioner; or

(b)  Negotiates reinsurance on behalf of the insurer.

(2)  Notwithstanding the above, the following persons shall not be considered as MGAs for the purposes of this Part:

(a)  An employee of the insurer.

(b)  A United States manager of the United States branch of an alien insurer.

(c)  An underwriting manager, which, pursuant to contract, manages all the insurance operations of the insurer, is under common control with the insurer, subject to the Holding Company Regulatory Act,* and whose compensation is not based on the volume of premiums written.

(d)  The attorney authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney.

E.  "Underwrite" means the authority to accept or reject risk on behalf of the insurer.

F.  "Producer" means a person currently licensed as a property and casualty agent, in accordance with the provisions of this Title, who is properly appointed to represent the insurer for the lines of insurance for which he is performing the duties of a managing general agent as defined herein.

Acts 1990, No. 265, §1, eff. midnight Dec. 31, 1991; Acts 1993, No. 189, §1.

*AS APPEARS IN ENROLLED BILL.