(1) Bind reinsurance or retrocessions on behalf of the insurer except that the MGA
may bind facultative reinsurance contracts pursuant to obligatory facultative agreements
if the contract with the insurer contains reinsurance underwriting guidelines, including,
for both reinsurance assumed and ceded, a list of reinsurers with which such automatic
agreements are in effect, the coverages and amounts or percentages that may be reinsured
and the commission schedules.
(2) Commit the insurer to participate in insurance or reinsurance syndicates.
(3) Appoint any agent without assuring that the agent is lawfully licensed to transact
the type of insurance for which he is appointed.
(4) Without prior approval of the insurer, pay or commit the insurer to pay a claim
over a specified amount, net of reinsurance, which shall not exceed one per centum
of the insurer's policyholder's surplus as of December 31 of the last completed calendar
(5) Collect any payment from a reinsurer or commit the insurer to any claim settlement
with a reinsurer without prior approval of the insurer. If prior approval is given, a report must be promptly forwarded to the insurer.
(6) Permit its subagent to serve on the insurer's board of directors.
(7) Jointly employ an individual who is employed with the insurer.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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