20-727. Management and exclusive agency contracts
A. A domestic stock or mutual insurer shall not make any contract whereby any person or persons are granted or are to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors, or are to have the controlling or preemptive right to produce substantially all insurance business for the insurer, unless the contract is filed with the director of the department of insurance and financial institutions and is subject to the director's approval. The contract shall be deemed approved unless disapproved by the director within twenty days after date of filing, subject to such reasonable extension of time as the director may require by notice given within such twenty days. Any disapproval shall be delivered to the insurer in writing, stating the grounds for the disapproval.
B. The director shall disapprove any such contract if the director finds that it:
1. Subjects the insurer to excessive charges.
2. Is to extend for an unreasonable length of time.
3. Does not contain fair and adequate standards of performance.
4. Contains other inequitable provisions or provisions that impair the proper interests of stockholders or members of the insurer.