WILLIAM DONALD SCHAEFER, Governor                         Ch. 551

(ii) Suspend the managing general agent's underwriting authority
during the pendency of any dispute regarding such termination;

(3) Require the managing general agent to:

(i) Render accounts to the insurer detailing all transactions; and

(ii) Remit at least monthly all funds due under the contract to the

insurer;

(4) Require that:

(i) All funds collected for the account of an insurer be held by the
managing general agent in a fiduciary capacity in a federally insured financial institution;
and

(ii) All payments on behalf of the insurer be made from this account;

(5)     Prohibit the managing general agent from retaining more than 3 months
estimated claims payments and allocated loss adjustment expenses;

(6)     Require the managing general agent to:

(i) Maintain separate records of business written on the insurer's

behalf; and

those records;

(ii) Permit both the insurer and the Commissioner to have access to

(7)     Require the managing general agent to maintain all books, records, and
accounts in a form acceptable to the Commissioner;

(8)     Prohibit the managing general agent from assigning the contract, in
whole or in part;

to:

(9)     Set forth appropriate underwriting guidelines, including, but not limited

(i)     Maximum annual premium volume;

(ii)    Types or classifications of risks which may be written;

(iii)    Maximum limits of liability;

(iv)    Applicable exclusions;

(v)     Territorial limitations;

(vi)    Policy cancellation provisions; and

(vii)    The maximum policy period;

(10)   Subject to all applicable laws concerning policy cancellation and
nonrenewals, grant the insurer the right to cancel or nonrenew any policy underwritten by
the managing general agent; [and]

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