(a)    In this subtitle the following words have the meanings indicated.

(b)    “Certificate of qualification” means a certificate of qualification issued by the Commissioner to act as a managing general agent.

(c)    (1)    “Managing general agent” means a person:

(i)    that:

1.    manages all or part of the insurance business of an insurer, including the management of a separate division, department, office, or subsidiary of the insurer; and

2.    with or without authority, separately or with affiliates, directly or indirectly produces or underwrites gross direct written premiums at least equal to 5% of the insurer’s policyholder surplus for any quarter or year, as reported in the insurer’s most recently filed quarterly report or annual statement; and

(ii)    that:

1.    negotiates or binds ceding reinsurance contracts for the insurer;

2.    adjusts or pays claims of more than $500; or

3.    maintains loss reserves from which claims may be paid.

(2)    “Managing general agent” does not include:

(i)    an employee of the insurer;

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

(iii)    an attorney in fact authorized by and acting for the subscribers of a reciprocal insurer under a power of attorney;

(iv)    an authorized insurance producer acting for a surety insurer that engages exclusively in the business of issuing bail bonds; or

(v)    an underwriting manager that, by contract:

1.    manages all the insurance operations of the insurer;

2.    is under common control with the insurer and is subject to Title 7, Subtitle 6 of this article; and

3.    is not compensated based on the volume of premiums written.

(d)    “Underwrite” means to accept or reject risks for an insurer.