(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.
Reinsurance or retrocessions
(b)(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.
Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 70, § 1, eff. Oct. 1, 1997; Acts 2001, c. 731, § 1, eff. July 2, 2001.
Formerly Art. 48A, § 669.
MD Code, Insurance, § 8-209, MD INSURANCE § 8-209
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.