New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 17 - PRODUCER LICENSING
Subchapter 6 - MANAGING GENERAL AGENTS
Section 11:17-6.2 - Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

"Commissioner" means the Commissioner of the New Jersey Department of Insurance.

"Insurer" means:

1. Any corporation, association, partnership, reciprocal exchange, interinsurer, Lloyd's insurer, fraternal benefit society or other person engaged in the business of insurance pursuant to 17:17-1 et seq., or 17B:17-1 et seq.;

2. Any medical service corporation operating pursuant to 17:48A-1 et seq.;

3. Any hospital service corporation operating pursuant to 17:48-1 et seq.;

4. Any health service corporation operating pursuant to 17:48E-1 et seq.;

5. Any dental service corporation operating pursuant to 17:48C-1 et seq.

"Managing general agent" or "MGA" means any person, firm, association or corporation who binds ceding reinsurance contracts on behalf of an insurer or 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 that 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:

1. Authority to adjusts or pays claims in excess of $ 5,000 per claim or in the aggregate, if the claims will settle for $ 100,000 or more in a year; or

2. Negotiates reinsurance on behalf of the insurer.

Notwithstanding the above; the following persons shall not be MGAs for the purposes of this subchapter:

1. An employee of the insurer;

2. A United States manager of the United States branch of an alien insurer;

3. An underwriting manager which, pursuant to contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, subject to 17:27A-1 et seq., and whose compensation is not solely based on the volume of premiums written;

4. An attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney.

"Nonresident" (of New Jersey) means a person for whom a state other than New Jersey has been designated the home state for the purpose of licensure.

"Producer" means a person licensed in accordance with 17:22A-26 et seq.

"Resident" (of New Jersey) means a person who maintains his or her principal place of residence or principal place of insurance business in New Jersey and for whom New Jersey has been designated the home state for the purpose of licensure.