44-4905 Managing general agent; prohibited acts. - Nebraska Statutes

44-4905. Managing general agent; prohibited acts.The managing general agent shall not:(1) Bind reinsurance or retrocessions on behalf of the insurer, except that the managing general agent may bind facultative reinsurance contracts pursuant to obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines, including, for both reinsurance assumed and ceded, a list of reinsurers with which such automatic agreements are in effect, the coverages and amounts or percentages that may be reinsured, and commission schedules;(2) Commit the insurer to participate in insurance or reinsurance syndicates;(3) Appoint any agent or broker without assuring that the agent or broker is lawfully licensed to transact the type of insurance for which he or she is appointed;(4) Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which shall not exceed one percent of the insurer's policyholders surplus as of December 31 of the last-completed calendar year;(5) Collect any payment from a reinsurer or commit the insurer to any claim settlement with a reinsurer without prior approval of the insurer. If prior approval is given, a report shall be promptly forwarded to the insurer;(6) Permit subagents or subbrokers of the insurer appointed by the managing general agent to serve on the insurer's board of directors;(7) Jointly employ an individual who is employed by the insurer; or(8) Appoint a submanaging general agent. SourceLaws 1990, LB 1136, § 116; Laws 1993, LB 583, § 109.