PARRIS N. GLENDENING, Governor

Ch. 36

BY REGULATION, THE COMMISSIONER MAY REQUIRE A MANAGING GENERAL
AGENT TO MAINTAIN A BOND OR OTHER SECURITY IN AN AMOUNT SET BY THE
COMMISSIONER TO PROTECT THE INSURER AND POLICYHOLDERS OR TO MAINTAIN
AN ERRORS AND OMISSIONS POLICY ISSUED BY AN AUTHORIZED INSURER, OR
BOTH.

(B) EXAMINATION.

A MANAGING GENERAL AGENT IS SUBJECT TO EXAMINATION UNDER §§ 2-205
THROUGH 2-209 OF THIS ARTICLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 666(b) and 671(b).

Defined terms: "Authorized insurer" § 1-101
"Commissioner" § 1-101
"Insurer" § 1-101
"Managing general agent" § 8-201

8-208. CONTRACT BETWEEN MANAGING GENERAL AGENT AND INSURER.

(A)     REQUIRED FOR PLACEMENT OF BUSINESS OR MAINTENANCE OF LOSS
RESERVES.

A MANAGING GENERAL AGENT MAY NOT PLACE BUSINESS WITH AN INSURER
OR MAINTAIN LOSS RESERVES FROM WHICH CLAIMS AGAINST AN INSURER MAY BE
PAID UNLESS A WRITTEN CONTRACT IS IN FORCE BETWEEN THE MANAGING
GENERAL AGENT AND INSURER.

(B)      CONTENTS.

AT A MINIMUM, THE CONTRACT SHALL:

(1)      STATE THE RESPONSIBILITIES OF EACH PARTY AND SPECIFY THE
DIVISION OF RESPONSIBILITIES FOR SHARED FUNCTIONS;

(2)      PROVIDE THAT THE INSURER MAY:

(I)       TERMINATE THE CONTRACT FOR CAUSE ON WRITTEN NOTICE
TO THE MANAGING GENERAL AGENT; AND

(II)     SUSPEND THE MANAGING GENERAL AGENT'S UNDERWRITING
AUTHORITY DURING A DISPUTE ABOUT THE TERMINATION;

(3)      REQUIRE THE MANAGING GENERAL AGENT TO:

(I)       GIVE ACCOUNTS TO THE INSURER DETAILING ALL
TRANSACTIONS; AND

(II)     REMIT TO THE INSURER AT LEAST MONTHLY ALL MONEY DUE
UNDER THE CONTRACT;

(4)      REQUIRE THAT:

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