§ 33-3-309 — Management And Exclusive Agency Contracts

33-3-309 . Management and exclusive agency contracts. (1) A domestic insurer may not make any contract under which any person is granted or is to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors or to have the controlling or preemptive right to produce substantially all insurance business for the insurer unless the contract is filed with and approved by the commissioner. The contract must be considered approved unless disapproved by the commissioner within 20 days after date of filing, subject to a reasonable extension of time that the commissioner may require by notice given within 20 days. Any disapproval must be delivered to the insurer in writing, stating the grounds for disapproval.
(2) The commissioner shall disapprove any contract if the commissioner finds that it:
(a) subjects the insurer to excessive charges;
(b) is to extend for an unreasonable length of time;
(c) does not contain fair and adequate standards of performance; or
(d) contains other inequitable provision or provisions that impair the proper interests of stockholders or members of the insurer.

Legislative History

En. Sec. 441, Ch. 286, L. 1959; R.C.M. 1947, 40-4724; amd. Sec. 1137, Ch. 56, L. 2009.