RS 22:1628

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RS 22:1628

§1628. Duties of managing general agents

A. At least once each calendar quarter, an MGA shall submit an account report to each insurer with whom the MGA has a contract and include in the report, as applicable, a statement of all of the following:

(1)Written, earned, and unearned premiums.

(2)Losses and loss expenses paid and outstanding.

(3)Losses incurred but not reported.

(4)Management fees.

(5)An outline of expenses, on a form prescribed by the commissioner, incurred by the MGA in the performance of duties under its contract with the insurer.

B. An MGA shall notify the department within thirty days of the date that any of the following occurs:

(1)Balances due to an insurer for more than ninety days exceed either of the following:

(a)One million dollars.

(b)Ten percent of the insurer's policyholder surplus, as reported in the annual statement filed with the department.

(2)Balances due for more than sixty days from a property and casualty agent or MGA appointed by or reporting to the MGA exceed five hundred thousand dollars.

(3)Authority to settle claims for an insurer is withdrawn.

(4)Money held for an insurer for losses is greater than an amount that is one hundred thousand dollars more than the amount necessary to pay the losses and loss adjustment expenses expected to be paid on the insurer's behalf within the next sixty-day period.

(5)The contract required pursuant to R.S. 22:1624 is cancelled or terminated.

C. Notwithstanding the notification period imposed by Subsection B of this Section, an MGA's requirement to notify as prescribed in Paragraphs (B)(1), (2), and

(4)of this Section may be met with a single annual report, if the MGA routinely operates above the limits established by Paragraphs (B)(1), (2), and

(4)of this Section and the department verifies that fact in conformity with rules adopted by the commissioner.

Acts 2024, No. 488, §1.