§ 27-20.7-3 - Written agreement.
SECTION 27-20.7-3
§ 27-20.7-3 Written agreement. – (a) No administrator shall act as an administrator without a written agreementbetween the administrator and the insurer, and the written agreement shall beretained as part of the official records of both the insurer and theadministrator for the duration of the agreement and for five (5) years afterthis. The agreement shall contain all provisions required by this section,except insofar as those requirements do not apply to the functions performed bythe administrator.
(b) The written agreement shall include a statement of dutieswhich the administrator is expected to perform on behalf of the insurer and thelines, classes or types of insurance for which the administrator is to beauthorized to administer. The agreement shall make provisions with respect tounderwriting or other standards pertaining to the business underwritten by theinsurer.
(c) The insurer or administrator may, with written notice,terminate the written agreement for cause as provided in the agreement. Theinsurer may suspend the underwriting authority of the administrator during thependency of any dispute regarding the cause for termination of the writtenagreement. The insurer shall fulfill any lawful obligations with respect topolicies affected by the written agreement, regardless of any dispute betweenthe insurer and the administrator.