Ala. Admin. Code r. 482-1-106-.03

Current through Register Vol. 43, No. 02, November 27, 2024

Section 482-1-106-.03 - Who Must File

An insurer must file the documents required under Rule 482-1-106-.04 for appointment of a managing general agent (MGA), if the insurer is either of the following:

(a) A foreign insurer holding a certificate of authority to transact insurance business in this state and has any person, firm, association or corporation who does either of the following:

1. Produces, directly or indirectly, and underwrites an amount of gross premium equal to or more than five percent (5%) of the policyholder surplus as reported in any one (1) quarter or year together with one (1) or both of the following:

(i) Adjusts or pays claims in excess of ten thousand dollars ($10,000) per claim.

(ii) Negotiates reinsurance on behalf of the insurer.

2. With respect to any risk located in this state, produces, directly or indirectly, and underwrites, and either or both of the following:

(i) Adjusts or pays claims in excess of ten thousand dollars ($10,000) per claim or five percent (5%) of the insurer's policyholder surplus in the aggregate per year.

(ii) Negotiates reinsurance on behalf of the insurer.

(b) Domiciled in this state and has any person, firm, association or corporation who produces, directly or indirectly, and underwrites an amount of gross premium equal to more than five percent (5%) of the policyholder surplus as reported in any one (1) quarter or year together with one (1) or both of the following:

1. Adjusts or pays claims.

2. Negotiates reinsurance on behalf of the insurer.

(2) Exceptions. Notwithstanding the provisions of Paragraph (1) of this rule, no insurer need file for appointment as an MGA any of the following persons:

(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 operations of the insurer, is under common control with the insurer and has its transactions with the insurer subject to the provisions of Chapter 29 of the Alabama Insurance Code, known as the Alabama Insurance Holding Company System Regulatory Act.

(d) The authorized attorney-in-fact acting on behalf of subscribers of a reciprocal or inter-insurance exchange.

Author: Reyn Norman, Associate Counsel

Ala. Admin. Code r. 482-1-106-.03

New Rule: August 1, 1994; effective August 11, 1994. Amended: August 19, 2002; effective August 29, 2002. Filed with LRS August 19, 2002. Rule is not subject to the Alabama Administrative Procedure Act.

Statutory Authority:Code of Ala. 1975, § 27-2-17 & §20, Act 93-675.