Sec. 38a-90d. Duties of the insurer.
Sec. 38a-90d. Duties of the insurer. (a) The insurer shall have on file an independent financial examination, in a form acceptable to the commissioner, of each managing
general agent with which it has done business.
(b) 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 shall be in addition to any other required loss reserve certification.
(c) The insurer shall semiannually conduct 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) Within thirty days of entering into or termination of a contract with a managing
general agent, the insurer shall provide written notification of such 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 authorized to act and any
other information the commissioner may require.
(f) An insurer shall review its books and records each quarter to determine if any
agent has become, by operation of subsection (b) of section 38a-90a, a managing general
agent. If the insurer determines that an agent has become a managing general agent, the
insurer shall promptly notify the agent of such determination and the insurer and agent
must fully comply with the provisions of sections 38a-90 to 38a-90h, inclusive, within
thirty days.
(g) An insurer shall not appoint to its board of directors an officer, director, employee or controlling shareholder of its managing general agents. This subsection shall
not apply to any relationships governed by the Insurance Holding Company Act or, if
applicable, the Broker Controlled Insurer Act.
(P.A. 91-262, S. 14, 19.)