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

(b)  If a managing general agent establishesloss reserves, the insurer shall annually obtain the opinion of an independentactuary attesting to the adequacy of loss reserves established for lossesincurred and outstanding on business produced by the managing general agent.  This is inaddition to any other required loss reserve certification required by thischapter.

(c)  The insurer shall conduct at leastsemiannually an on-site review of the underwriting and claims processingoperations of the managinggeneral agent.

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

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

(f)  An insurer shall review its books andrecords each quarter to determine if any producer, as defined in section431:11A-101, has become a managinggeneral agent.  If the insurer determines that a producer hasbecome a managing generalagent, the insurer shall promptly notify the producer and thecommissioner of the determination and the insurer and producer shall fullycomply with this article within thirty days.

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