Section 375.150

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 01 Jul 1991, 2 histories, see footnote   

  375.150.  Duties of insurer — appointment of or termination of contract with managing general agent, notice to director, content. — 1.  The insurer shall have on file an independent financial examination in a form acceptable to the director of each managing general agent with which it has done business.

  2.  If a managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent.  This requirement is in addition to any other required loss reserve certification.

  3.  The insurer shall periodically conduct an on-site review of the underwriting and claims processing operations of the managing general agent.

  4.  Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an office of the insurer, who shall not be affiliated with the managing general agent.

  5.  Within thirty days of entering into or termination of a contract with a managing general agent, the insurer shall provide written notification of such appointment or termination to the director.  Notices of appointment of a managing general agent shall include a statement of duties which the applicant is expected to perform on behalf of the insurer, the lines of insurance for which the applicant is to be authorized to act, and any other information the director may request.

  6.  An insurer quarterly shall review its books and records to determine if any producer has become, by operation of subdivision (4) of subsection 3 of section 375.147, a managing general agent as defined in that section.  If the insurer determines that a producer has become a managing general agent pursuant to the above review, the insurer shall promptly notify the producer and the director of such determination and the insurer and producer must fully comply with the provisions of sections 375.147 to 375.153 within thirty days.

  7.  An insurer shall not appoint to its board of directors any^* officer, director, employee or controlling shareholder of any of its managing general agents.  This subsection shall not apply to relationships governed by the provisions of chapter 382.

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(L. 1990 H.B. 1739 § 9)

Effective 7-01-91

*Word "an" appears in original rolls.