§ 24-A §6404 — Minimum standards

1.
Applicability.
This section applies as follows.
2.
Required contract provisions.
A controlled insurer may not accept business from a controlling producer and a controlling producer may not place business with a controlled insurer unless there is a written contract between the controlling producer and the controlled insurer specifying the responsibilities of each party. The contract must be approved by the board of directors of the insurer and must contain the following minimum provisions.
3.
Audit committee.
Every controlled insurer must have an audit committee of the board of directors composed of independent directors. The audit committee shall annually meet with management, the insurer's independent certified public accountants and an independent casualty actuary acceptable to the superintendent to review the adequacy of the insurer's loss reserves.
4.
Reporting requirements.
A controlled insurer shall make the following reports.

Legislative History

PL 1991, c. 828, §33 (NEW). PL 2017, c. 169, Pt. E, §9 (AMD).