375.150. Duties of insurer--appointment of or termination of contract with managing general agent, notice to director, content.

MISSOURI STATUTES AND CODES

375.150. Duties of insurer--appointment of or termination of contract with managing general agent, notice to director, content.

Duties of insurer--appointment of or termination of contract withmanaging general agent, notice to director, content.

375.150. 1. The insurer shall have on file an independentfinancial examination in a form acceptable to the director ofeach 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 actuaryattesting to the adequacy of loss reserves established for lossesincurred and outstanding on business produced by the managinggeneral agent. This requirement is in addition to any otherrequired loss reserve certification.

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

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

5. Within thirty days of entering into or termination of acontract with a managing general agent, the insurer shall providewritten notification of such appointment or termination to thedirector. Notices of appointment of a managing general agentshall include a statement of duties which the applicant isexpected to perform on behalf of the insurer, the lines ofinsurance for which the applicant is to be authorized to act, andany other information the director may request.

6. An insurer quarterly shall review its books and recordsto determine if any producer has become, by operation ofsubdivision (4) of subsection 3 of section 375.147, a managinggeneral agent as defined in that section. If the insurerdetermines that a producer has become a managing general agentpursuant to the above review, the insurer shall promptly notifythe producer and the director of such determination and theinsurer and producer must fully comply with the provisions ofsections 375.147 to 375.153 within thirty days.

7. An insurer shall not appoint to its board of directorsany* officer, director, employee or controlling shareholder of anyof its managing general agents. This subsection shall not applyto relationships governed by the provisions of chapter 382, RSMo.