Section 375.147

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 1999   

  375.147.  Managing general agents (MGA) — citation of law — definitions — law effective, when. — 1.  Sections 375.147 to 375.153 may be cited as the "Managing General Agents Act".

  2.  Sections 375.147 to 375.153 shall take effect on July 1, 1991.  No insurer may continue to utilize the services of a managing general agent after June 30, 1991, unless such utilization is in compliance with sections 375.147 to 375.153.

  3.  As used in sections 375.147 to 375.153, the following words and phrases shall mean:

  (1)  "Actuary", a person who is a member in good standing of the American Academy of Actuaries;

  (2)  "Director", the director of the department of commerce and insurance;

  (3)  "Insurer", any person, firm, association or corporation duly licensed in this state as an insurance company pursuant to section 375.161 or 375.791;

  (4)  "Managing general agent" or "MGA", any person, firm, association or corporation who 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 such 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 premiums 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:

  (a)  Adjusts or pays claims in excess of an amount determined by the director.  The threshold amount set by the director pursuant to this paragraph shall be applied equally to both domestic and foreign insurers; or

  (b)  Negotiates reinsurance on behalf of the insurer.  Notwithstanding the above, the following persons shall not be considered as managing general agents for the purposes of sections 375.147 to 375.153:

  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 operation of the insurer, is under common ownership or control with the insurer, subject to the provisions of chapter 382;

  d.  A person holding a valid certificate of registration as an administrator and acting solely as an "administrator" as defined in section 376.1075; or

  e.  The attorney authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney;

  (5)  "Underwrite", the authority to accept or reject risk on behalf of the insurer.

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(L. 1990 H.B. 1739 §§ 5, 6, B, A.L. 1992 H.B. 1574, A.L. 1993 H.B. 709, A.L. 1999 H.B. 478)