Wis. Admin. Code Office of the Commissioner of Insurance Ins 42.01

Current through November 25, 2024

Section Ins 42.01 - Definitions

In this chapter:

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

(2) "Insurer" means an insurer as defined under s. 600.03(27), Stats., which has a certificate of authority under ch. 611, 612, 613, 614 or 618, Stats.

(3)

(a) "Managing general agent" means any person not excluded under par. (b), including, but not limited to, a natural person, who, in or outside this state:

1. Manages all or part of the insurance business of an insurer or manages a separate division, department or underwriting office;

2. Acts as an agent for the insurer; and

3. With or without the authority, either separately or together with affiliates, directly or indirectly:

a. Produces and underwrites in any one quarter or year an amount of gross direct written premium equal to or more than 5% of the policyholder surplus as reported in the last annual statement of the insurer; and

b. Adjusts or pays claims in any one quarter or year in excess of 3% of the policyholder surplus as reported in the last annual statement of the insurer, or negotiates reinsurance on behalf of the insurer, or both.

(b) The following persons are not managing general agents:

1. A person who is not an intermediary under s. 628.02(1) (b), Stats.;

2. An employe of the insurer;

3. A manager of the United States branch of an alien insurer;

4. An underwriting manager which, under a written contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, is subject to ch. 617, Stats., and ch. Ins 40, or the laws and rules of another state which are substantially similar to ch. 617, Stats., and ch. Ins 40, and whose compensation is not based on the volume of premiums written; and

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

(4) "Policyholder surplus" means capital and surplus.

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

Wis. Admin. Code Office of the Commissioner of Insurance Ins 42.01

Cr. Register, July, 1993, No. 451, eff. 8-1-93.