§ 31-1501 — Definitions.

District of Columbia § 31-1501

• Jurisdiction: District of Columbia
• Title 31: Insurance and Securities.
• Ch. 15: Managing General Agents.

Text

For the purposes of this chapter, the term:

(1) “Actuary” means a person who is a member in good standing of the American Academy of Actuaries.

(2) “District” means the District of Columbia.

(3) “Insurer” means any person, firm, association, or corporation duly licensed in the District as an insurance company pursuant to §§ 31-4304 and 31-2502.02 .

(A) “Managing general agent” means any person, firm, association, or corporation who:

(i) Negotiates and binds ceding reinsurance contracts on behalf of an insurer; or

(ii) Manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office; and

(iii) Acts as an agent for such an 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 5% of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year, and, in addition, adjusts or pays claims in excess of an amount determined by the Mayor, or negotiates reinsurance on behalf of the insurer.

(B) Notwithstanding the above definition, the term “managing general agent” shall not apply to the following persons for the purposes of this chapter:

(i) An employee of the insurer;

(ii) A United States manager of the United States branch of an alien insurer;

(iii) An underwriting manager who, pursuant to contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, subject to Chapter 7 of this title , or its predecessor, and whose compensation is not based on the volume of premiums written; or

(iv) The attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or inter-insurance exchange under powers of attorney.

(5) “Producers” means an insurance broker or brokers or any other person, firm, association, or corporation, when for any compensation, commission or other thing of value, such person, firm, association, or corporation acts or aids in any manner in soliciting, negotiating, or procuring the making of any insurance contract on behalf of an insured other than the person, firm, association, or corporation.

(6) “Underwrite” means the authority to accept or reject risks on behalf of the insurer.

Legislative History

Oct. 21, 1993, D.C. Law 10-41, § 2, 40 DCR 6014; Apr. 18, 1996, D.C. Law 11-110, § 41, 43 DCR 530