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§ 8-210. Duties of insurer

West's Annotated Code of MarylandInsuranceEffective: October 1, 2022

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 8. Entities that Act as Insurers
Subtitle 2. Managing General Agents (Refs & Annos)
Effective: October 1, 2022
MD Code, Insurance, § 8-210
§ 8-210. Duties of insurer
Currentness
Independent financial examinations
(a)(1) An insurer shall maintain independent financial examinations, in a form acceptable to the Commissioner, of each managing general agent with whom the insurer has done business.
(2) The insurer shall keep records for at least 5 years.
Opinions from independent actuaries
(b)(1) If, by contract, an insurer allows a managing general agent to maintain loss reserves, the insurer annually shall get an opinion, attesting to the adequacy of the loss reserves established, from an independent actuary who is a member in good standing of the American Academy of Actuaries.
(2) The insurer shall keep the report of the actuary for at least 5 years.
Review of underwriting and claims processing operations
(c) At least twice a year, an insurer shall conduct a review of the underwriting and claims processing operations of its managing general agent.
Notice of entering into or terminating contracts with managing general agents
(d)(1) Within 30 days after entering into or terminating a contract with a managing general agent, an insurer shall notify the Commissioner in writing of doing so.
(2) The notice of entering into a contract shall include:
(i) a statement of the duties and responsibilities of the managing general agent;
(ii) the lines of insurance that the managing general agent is contractually authorized to negotiate, procure, or bind for the insurer;
(iii) a copy of the contract; and
(iv) any other information or documentation that the Commissioner requests.
Restrictions relating to board of directors
(e) Unless the relationship between an insurer and managing general agent is controlled by and disclosed under Title 7, Subtitle 6 or 7 of this article, the insurer may not have on its board of directors an officer, director, employee, agent, or shareholder of its managing general agent.
Insurance producers becoming managing general agents
(f)(1) Each insurer shall review its books and records each quarter to determine if any insurance producer has become a managing general agent.
(2) If the insurer determines that an insurance producer has become a managing general agent:
(i) the insurer promptly shall notify the insurance producer and the Commissioner of the determination; and
(ii) the insurer and insurance producer must comply fully with the provisions of this subtitle within 30 days after the determination.
Regulations
(g) The Commissioner may adopt regulations to carry out this section.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2001, c. 731, § 1, eff. July 2, 2001; Acts 2022, c. 121, § 1, eff. Oct. 1, 2022.
Formerly Art. 48A, §§ 665, 670.
MD Code, Insurance, § 8-210, MD INSURANCE § 8-210
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document