Mass. Gen. Laws ch. 175 § 177G

Current through Chapter 223 of the 2024 Legislative Session

Section 175:177G - Definitions

As used in sections one hundred and seventy-seven F to one hundred and seventy-seven L, inclusive, the following words shall, unless the context clearly requires otherwise, have the following meanings:

"Actuary", a person who is a member in good standing of the American Academy of Actuaries.

"Insurer", any person, firm, association or corporation engaged in the business of insurance in this commonwealth.

"Producer", an agent, broker or reinsurance intermediary licensed pursuant to the applicable provisions of the General Laws.

"Managing general agent", 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, line, product 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, directly or indirectly produces or underwrites an amount of gross direct written premium 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: (i) adjusts or pays claims on behalf of the insurer; or (ii) negotiates insurance on behalf of the insurer.

Notwithstanding the foregoing, the following persons shall not be considered as managing general agents for the purposes of sections one hundred and seventy-seven F to one hundred and seventy-seven L, inclusive:

(1) an employee of the insurer;

(2) a United States manager of the United States branch of an alien insurer;

(3) an underwriting manager which, pursuant to contract, manages all or part of the insurance operations of an authorized insurer, is under common control with such insurer, subject to sections two hundred and six to two hundred and six D, inclusive, and whose compensation is not based on the volume of premiums written; or

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

"Underwrite", the authority to accept or reject risks on behalf of the insurer.

Mass. Gen. Laws ch. 175, § 177G