(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 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.
Maryland Legal Code