(a) The insurer shall have on file, in a form acceptable to the Commissioner, an independent financial examination of each managing general agent with which it has done business.
(b) If a managing general agent establishes loss reserves, the insurer shall obtain annually 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 annual opinion is in addition to any other required loss reserve certification.
(c) The insurer shall conduct not less frequently than once a year an on-site review of the underwriting and claims processing operations of the managing general agent.
(d) Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates is vested in an officer of the insurer who is not affiliated with the managing general agent.
(e) Not later than 30 days after entering into or terminating a contract with a managing general agent, the insurer shall provide written notification of the appointment or termination to the Commissioner. Notices of appointment of a managing general agent must include a statement of duties that the managing general agent is expected to perform on behalf of the insurer, the lines of insurance the managing general agent will manage, and any other information the Commissioner may request.
(f) An insurer shall review its books and records each quarter to determine if any producer has become a managing general agent. If the insurer determines that a producer has become a managing general agent, the insurer, not later than 60 days, shall provide written notice of the determination to the producer and Commissioner. The insurer and producer shall comply with sections 771 to 774 not later than 30 days after receipt of the notice.
(g) It is unlawful for any insurer to appoint to its board of directors, it’s managing general agent or an officer, director, employee, producer, or controlling shareholder of its managing general agent.