The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Act--The Managing General Agents' Licensing Act (the Insurance Code, Article 21.07-3). (2) Affiliate--An affiliate of, or person affiliated with, a specific person, is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified. (3) Board--The State Board of Insurance. (4) Carrier--A company, as defined in this section. (5) Commissioner--The commissioner of insurance. (6) Company--Any insurance company, corporation, inter-insurance exchange, mutual, reciprocal, association, county mutual insurance company, Lloyds, or other insurance carrier licensed to transact business in the State of Texas, excepting, however, those
which write only life, health, and accident insurance and variable life insurance and variable annuity contracts. (7) Control--The possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. The term "control" shall include the terms "controlling," "controlled by," and "under common control with." Control shall be presumed to exist if any person, directly or indirectly, or with members of the person's immediate family, owns, controls, or holds with the power to vote, or if any person other than a corporate officer or director of a person holds proxies representing, 10% or more of the voting securities or authority of any other person, or if any person by
contract or agreement is designated as an attorney-in-fact for a Lloyd's plan insurer under the Insurance Code, Article 18.02, or for a reciprocal or interinsurance exchange under the Insurance Code, Articles 19.02 and 19.10. This presumption may be rebutted by a showing that control does not exist in fact. The commissioner may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support such determination, that control exists in fact, notwithstanding the absence of presumption to that effect, where a person exercises directly or indirectly either alone or pursuant to an agreement with one or more other persons such a controlling influence over the management or policies of an authorized insurer or an MGA as to make it necessary or appropriate in the public interest or for the protection of the policyholders of the insurer that the person be deemed to control the insurer or MGA.
(8) Insurer--A company, as defined in this section. (9) Loss reserves--Has the meaning given to that phrase in the Insurance Code, Article 21.39. (10) MGA--A managing general agent, as defined in this section. (11) Managing general agent--Any person, firm, or corporation who has supervisory responsibility for the local agency and field operations of an insurance company or carrier within this state, or any part thereof, or who is authorized by a company or carrier to accept or process in its behalf insurance policies produced and sold by other agents. The term does not include an agent licensed under the Insurance Code, Article 1.14-2, 21.11, or 21.14, unless that agent accepts 50% or more of that agent's total annual business or does more than $500,000 of total annual business, whichever amount is less, as measured by premium volume from insurance policies produced and sold by other agents. An agent licensed
under the Insurance Code, Article 21.11, who does business in conformance with the Insurance Code, Article 21.11, is not considered to derive any income from policies produced by other agents, as that term is used in the Act, §2(a); however, the agent is considered to derive its income from policies sold by such other agents. A managing general agent may perform any of the following acts for a company or carrier: receive and pass upon daily reports and monthly accounts; receive and be responsible for agency balances; handle the adjustment of losses; or appoint or direct local recording agents, state agents, or special agents within this state, or any part thereof. (12) Person--An individual, a corporation, a partnership, an association, a joint stock company, a trust, an incorporated organization, any similar entity or any combination of the foregoing acting in concert, but not any securities broker performing no more than the usual and customary broker's
function.
|
