Managing general agent

Sec. 4. (a) As used in this chapter, "managing general agent" or "MGA" means any person, firm, association, or corporation: (1) that manages all or part of the insurance business of an insurer (including the management of a separate division, department, or underwriting office); (2) that acts as an agent for the insurer, whether known as a managing general agent, manager, or other similar term; (3) that, with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross direct written premium at least five percent (5%) of the policyholder surplus as reported in the last annual statement of the insurer in any one (1) quarter or year; and (4) that does at least one (1) of the following activities related to the business produced: (A) Adjusts or pays claims in excess of an amount determined by the commissioner. (B) Negotiates reinsurance on behalf of the insurer. (b) Notwithstanding subsection (a), the following persons are not MGAs for the purposes of this chapter: (1) An employee of the insurer. (2) A United States manager of the United States branch of an alien insurer. (3) An underwriting manager that, pursuant to contract: (A) manages all or part of the insurance operations of the insurer; (B) is under common control with the insurer, subject to IC 27-1-23; and (C) is not compensated based on the volume of premiums written. (4) An attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer as authorized in IC 27-6-6-1 or an interinsurance exchange as authorized in IC 27-1-2-2 under powers of attorney.