Definition of Managing General Agent

DEPARTMENT OF INSURANCE STATE OF NORTH DAKOTA Jim Poolman Commissioner of Insurance BULLETIN 2003-2 TO: All Companies Licensed in North Dakota FROM: Jim Poolman, Commissioner DATE: September 8, 2003 SUBJECT: Definition of Managing General Agent --------------------------------------------------------------------------------------------------------------------- N.D. Cent. Code § 26.1-26.3-01(3) defines “managing general agent”. Subsection (3)(b)(1) allows the Commissioner to exempt from N.D. Cent. Code Chapter 26.1-26.3 a managing general agent that adjusts claims below an amount “determined by the commissioner”. This bulletin revises the Department’s previous guideline threshold of $5,000 and sets a threshold of $10,000. The $10,000 threshold is recommended by the Managing General Agent Model Act adopted by the National Association of Insurance Commissioners (NAIC) in 2002. Therefore, from and after the date of this bulletin, the term “managing general agent”, as defined in N.D. Cent. Code § 26.1-26.3-01(3), does not include any individual, partnership, corporation, or limited liability company unless, in addition to the criteria set forth therein, the individual, partnership, corporation, or limited liability company adjusts or pays claims in excess of $10,000. Questions regarding this bulletin may be directed to Carole Kessel of the North Dakota Insurance Department at (701) 328-2440. JP/njb