§ 8-209
292 words·~1 min read·
/md/insurance/8-209A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§8–209.
(a)A managing general agent may not:
(1)commit the insurer to participate in insurance or reinsurance syndicates;
(2)appoint or hire an insurance producer to solicit, procure, or negotiate insurance contracts for the insurer without ensuring that the insurance producer is licensed under Title 10, Subtitle 1 of this article;
(3)take an action that would violate § 27-503 of this article if taken directly by the insurer;
(4)without the insurer’s written approval, pay or commit the insurer to pay a claim, net of reinsurance, that exceeds 1% of the insurer’s policyholder surplus as of December 31 of the immediately preceding calendar year;
(5)without the insurer’s prior written approval, collect any payment from a reinsurer;
(6)commit the insurer to a claim settlement with a reinsurer;
(7)employ an individual who also is employed by the insurer;
(8)allow an agent or employee of the managing general agent to serve on the insurer’s board of directors; or
(9)appoint a submanaging general agent unless:
(i)approval of the appointment is obtained from the Commissioner and from the insurer for whom the managing general agent acts; and
(ii)the submanaging general agent complies with any requirements imposed by the Commissioner under § 8-213 of this subtitle.
(1)Except as provided in paragraph
(2)of this subsection, a managing general agent may not bind reinsurance or retrocessions for an insurer.
(2)A managing general agent may bind facultative reinsurance contracts under obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines for reinsurance both assumed and ceded, including:
(i)a list of reinsurers with which the automatic agreements are in effect;
(ii)the coverages and amounts or percentages that may be reinsured; and
(iii)commission schedules.