§431:9C-102  Licensure.  (a)  No person,firm, association, or corporation shall act as a managing general agent, with respectto risks located in this State for an insurer licensed in this State, unlesslicensed as a producer in this State.

(b)  No person, firm, association, orcorporation shall act as a managinggeneral agent, representing an insurer domiciled in this Statewith respect to risks located outside this State, unless licensed as a producerin this State.

(c)  The commissioner shall require themanaging general agent to furnish a bond in an amount equal to $100,000 or tenper cent of annual gross direct written premiums, whichever is greater, with aninsurance company licensed to do business within the State or with an insurancecompany approved by the commissioner, for the protection of the insurer.  Eachmanaging general agent shall provide the commissioner with:

(1)  Proof of the bond at the time of the initialapplication for licensure;

(2)  Appropriate documentation at the time of each renewalto show that the bond continues to be in effect or that a new bond has beensecured; and

(3)  Any other report required by the commissioner.

(d)  The commissioner shall require themanaging general agent to maintain an errors and omissions policy in an amountequal to $1,000,000 or twenty-five per cent of annual gross direct writtenpremiums, whichever is greater, with an insurance company licensed to dobusiness within the State or an insurance company approved by thecommissioner.  Each managing general agent shall provide the commissioner with:

(1)  Proof of the policy at the time of the initialapplication for licensure;

(2)  Appropriate documentation at the time of eachrenewal to show that the policy continues to be in effect or that a new policyhas been secured; and

(3)  Any other report required by the commissioner. [L2002, c 155, pt of §2; am L 2003, c 212, §70; am L 2006, c 189, §7]