Section 42.05. Duties of insurers.

 

(1)  Each insurer shall have on file an independent financial examination of each managing general agent with which it has done business after August 1, 1993.

(2)  If a managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent. This is in addition to any required loss reserve certification required under s. Ins 50.30 (1) .

(3)  An insurer shall at least semiannually conduct an on-site review of the underwriting and claims processing operations of its managing general agents.

(4)  An insurer shall require that binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer who is not associated with the managing general agent except the commissioner may give a written waiver of this subsection if the managing general agent is a wholly owned subsidiary of the insurer.

(5)  Within 30 days of entering into or termination of a contract with a managing general agent, an insurer shall provide written notification of the appointment or termination to the commissioner. Notices of appointment of a managing general agent shall include a statement of duties which the applicant is expected to perform on behalf of the insurer, the lines of insurance for which the applicant is to be authorized to act, a copy of the contract, and any other information the commissioner may request.

(6)  An insurer shall review its books and records each quarter of the calendar year to determine if any producer has become a managing general agent. If the insurer determines that a producer has become a managing general agent, the insurer shall promptly notify the producer and the commissioner of the determination and the insurer and producer shall fully comply with this chapter within 30 days.

(7)  An insurer shall not appoint to its board of directors an officer, director, employe, subproducer or controlling shareholder of its managing general agents except the commissioner may give a written waiver of this subsection if the managing general agent is a wholly owned subsidiary of the insurer.

History: Cr. Register, July, 1993, No. 451 , eff. 8-1-93; CR 05-066 : am. (2) Register January 2006 No. 601 , eff. 2-1-06 .