§ 8-210. Duties of insurer as to managing general agents

   (a) Independent financial examinations. --

   (1) An insurer shall maintain independent financial examinations, in a form acceptable to the Commissioner, of each managing general agent with whom the insurer has done business.

   (2) The insurer shall keep records for at least 5 years.

(b) Opinion of actuary as to loss reserves. --

   (1) If, by contract, an insurer allows a managing general agent to maintain loss reserves, the insurer annually shall get an opinion, attesting to the adequacy of the loss reserves established, from an independent actuary who is a member in good standing of the American Academy of Actuaries.

   (2) The insurer shall keep the report of the actuary for at least 5 years.

(c) On-site review. -- At least twice a year, an insurer shall conduct an on-site review of the underwriting and claims processing operations of its managing general agent.

(d) Entering into or terminating contract with managing general agent. --

   (1) Within 30 days after entering into or terminating a contract with a managing general agent, an insurer shall notify the Commissioner in writing of doing so.

   (2) The notice of entering into a contract shall include:

      (i) a statement of the duties and responsibilities of the managing general agent;

      (ii) the lines of insurance that the managing general agent is contractually authorized to negotiate, procure, or bind for the insurer;

      (iii) a copy of the contract; and

      (iv) any other information or documentation that the Commissioner requests.

(e) Board of directors. -- Unless the relationship between an insurer and managing general agent is controlled by and disclosed under Title 7, Subtitle 6 or 7 of this article, the insurer may not have on its board of directors an officer, director, employee, agent, or shareholder of its managing general agent.

(f) New managing general agent. --

   (1) Each insurer shall review its books and records each quarter to determine if any insurance producer has become a managing general agent.

   (2) If the insurer determines that an insurance producer has become a managing general agent:

      (i) the insurer promptly shall notify the insurance producer and the Commissioner of the determination; and

      (ii) the insurer and insurance producer must comply fully with the provisions of this subtitle within 30 days after the determination.

HISTORY: An. Code 1957, art. 48A, § 665, 670; 1995, ch. 36; 2001, ch. 731, § 1.