Current through Register Vol. 42, No. 5, February 29, 2024
An insurer must file the documents required under Rule
482-1-106-.04
for appointment of a managing general agent (MGA), if the insurer is either of
the following:
(a) A foreign insurer
holding a certificate of authority to transact insurance business in this state
and has any person, firm, association or corporation who does either of the
following:
1. Produces, directly or
indirectly, and underwrites an amount of gross premium equal to or more than
five percent (5%) of the policyholder surplus as reported in any one (1)
quarter or year together with one (1) or both of the following:
(i) Adjusts or pays claims in excess of ten
thousand dollars ($10,000) per claim.
(ii) Negotiates reinsurance on behalf of the
insurer.
2. With respect
to any risk located in this state, produces, directly or indirectly, and
underwrites, and either or both of the following:
(i) Adjusts or pays claims in excess of ten
thousand dollars ($10,000) per claim or five percent (5%) of the insurer's
policyholder surplus in the aggregate per year.
(ii) Negotiates reinsurance on behalf of the
insurer.
(b)
Domiciled in this state and has any person, firm, association or corporation
who produces, directly or indirectly, and underwrites an amount of gross
premium equal to more than five percent (5%) of the policyholder surplus as
reported in any one (1) quarter or year together with one (1) or both of the
following:
1. Adjusts or pays
claims.
2. Negotiates reinsurance
on behalf of the insurer.
(2) Exceptions.
Notwithstanding the provisions of Paragraph (1) of this rule, no insurer need
file for appointment as an MGA any of the following persons:
(a) An employee of the insurer.
(b) A 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 and has its
transactions with the insurer subject to the provisions of Chapter 29 of the
Alabama Insurance Code, known as the Alabama Insurance Holding Company System
Regulatory Act.
(d) The authorized
attorney-in-fact acting on behalf of subscribers of a reciprocal or
inter-insurance exchange.
Author: Reyn Norman, Associate
Counsel
Statutory Authority:
Code of Ala.
1975, §
27-2-17
& §20, Act 93-675.
