“Managing general agent” defined.
1. A “managing general agent” is a person who:
(a) Negotiates and 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 of underwriting office; or
(b) Acts as an agent for the insurer and with or without the authority, either separately or together with affiliates:
(1) Produces, directly or indirectly, and underwrites an amount of gross direct written premiums equal to or more than 5 percent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year; and
(2) Adjusts or pays claims in excess of an amount determined by the Commissioner or negotiates reinsurance on behalf of the insurer.
2. A managing general agent includes a person with authority to appoint and to terminate the appointment of an agent for an insurer.
3. For the purposes of this chapter, the following are not managing general agents:
(a) An employee of the insurer;
(b) A manager of the United States branch of an alien insurer;
(c) An attorney authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange; and
(d) An underwriting manager who, pursuant to a contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, is subject to the provisions of chapter 692C of NRS and whose compensation is not based on the volume of premiums written or the profit of the business written.
Last modified: February 27, 2006