[§431:9C-104]  Duties of insurers.  (a) 
An insurer shall have on file an independent financial examination of each managing general agent
with whom it has done business in a form acceptable to the commissioner.



(b)  If a managing general agent establishes
loss reserves, the insurer shall annually obtain the opinion of an independent
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 other required loss reserve certification required by this
chapter.



(c)  The insurer shall conduct at least
semiannually an on-site review of the underwriting and claims processing
operations of the managing
general agent.



(d)  Binding authority for all reinsurance
contracts or participation in insurance or reinsurance syndicates shall rest
with an officer of the insurer, who shall not be affiliated with the managing general agent.



(e)  The insurer shall notify the commissioner
in writing within thirty days of entering into or terminating a contract with a
managing general agent. 
Notices of appointment of a managing
general agent shall include a statement of duties which the managing general agent
is expected to perform on behalf of the insurer, the lines of insurance for
which the managing general
agent is to be authorized to act, and any other information the
commissioner may request.



(f)  An insurer shall review its books and
records each quarter to determine if any producer, as defined in section
431:11A-101, 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 article within thirty days.



(g)  An insurer shall not appoint to its board
of directors an officer, director, employee, subagent, or controlling
shareholder of any of its managing
general agents; provided that this subsection shall not apply to
relationships governed by article 11. [L 2002, c 155, pt of §2]