§ 27-1-33-8 — Independent financial examination; loss reserves; on-site review of underwriting and claims; reinsurance; termination of contracts; review of books and records; board of directors

Indiana § 27-1-33-8

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 33: Managing General Agents

Text

(a) An insurer shall have on file an independent
financial examination, in a form acceptable to the commissioner, of
each MGA with which it has done business.
(b) If an MGA 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 MGA. This requirement is in addition to any other
required loss reserve certification.
(c) The insurer shall periodically (at least semiannually) conduct an
on-site review of the underwriting and claims processing operations of
the MGA.
(d) Binding authority for all reinsurance contracts or participation
in insurance or reinsurance syndicates shall rest with an officer of the
insurer, who may not be affiliated with the MGA.
(e) Within thirty (30) days after entering into or terminating a
contract with an MGA, the insurer shall provide written notification of
the appointment or termination to the commissioner. Notices of
appointment of an MGA must include a statement of duties that the
applicant is expected to perform on behalf of the insurer, the lines of
insurance for which the applicant 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 by section 4 of this chapter) has
become, by operation of section 4 of this chapter, an MGA. If the
insurer determines that a producer has become an MGA pursuant to
section 4 of this chapter, the insurer shall promptly notify the producer
and the commissioner of that determination, and the insurer and
producer shall fully comply with the provisions of this chapter within
thirty (30) days.
(g) An insurer shall not appoint to its board of directors an officer,
a director, an employee, a subproducer, or a controlling shareholder of
its MGAs. This subsection does not apply to relationships governed by
IC 27-1-23.
(h) An insurance holding company system regulated under IC 27-1-23 may perform the obligations imposed by this section for
insurers affiliated in the system by submitting, in a form acceptable to
the commissioner, consolidated information concerning the MGAs
with whom the insurers have done business.

Legislative History

As added by P.L.1-1992, SEC.148. Amended by P.L.116-1994, SEC.45.