For purposes of the Managing General Agents Act:
(1) Actuary shall mean a person who is a member in good standing of the American Academy of Actuaries;
(2) Director shall mean the Director of Insurance;
(3) Insurer shall mean any person, firm, association, or corporation duly licensed in this state as an insurance company pursuant to Chapter 44;
(4) Managing general agent shall mean 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, 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, produces, directly or indirectly, and underwrites in any one quarter or year an amount of gross direct written premium equal to or more than five percent of the policyholders surplus as reported in the last annual statement of the insurer and who (a) adjusts or pays claims in excess of an amount determined by the director or (b) negotiates reinsurance on behalf of the insurer. Managing general agent shall not include an attorney in fact for a reciprocal or interinsurance exchange, an employee of the insurer, a United States manager of the United States branch of an alien insurer, or an underwriting manager who, pursuant to contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, and is subject to the Insurance Holding Company System Act and whose compensation is not based on the volume of premiums written; and
(5) Underwrite shall mean the authority to accept or reject risk on behalf of the insurer.