(a) An insurer shall have on file an independent financial examination in a form acceptable to the commissioner of each managing general agent with whom it has done business.
Terms Used In Hawaii Revised Statutes 431:9C-104
Contract: A legal written agreement that becomes binding when signed.
(b) If a managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of an independent actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent. The opinion required by this subsection shall be in addition to any other required loss reserve certification required by this chapter.(c) The insurer shall conduct at least semiannually 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) The insurer shall notify the commissioner in writing within thirty days of entering into or terminating a contract with a managing general agent. Notice of the appointment of a managing general agent shall include a statement of the duties that the managing general agent is expected to perform on behalf of the insurer, the lines of insurance for which the managing general agent shall be 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 producer has become a managing general agent of the insurer. If the insurer determines that a producer has become a managing general agent of the insurer, the insurer shall promptly notify the producer and the commissioner and the insurer and producer shall both fully comply with this article within thirty days.(g) An insurer shall not appoint to its board of directors an officer, director, employee, subagent, or controlling shareholder of any of its managing general agents; provided that this subsection shall not apply to relationships governed by article 11.(h) The insurer shall keep the bond and the errors and omissions policy required by § 431:9C-103 on file for review by the commissioner or other applicable regulatory agency.
