Ch. 36

1995 LAWS OF MARYLAND

(I)      ALL MONEY COLLECTED FOR THE ACCOUNT OF THE INSURER
BE HELD BY THE MANAGING GENERAL AGENT IN A FIDUCIARY CAPACITY IN A
FEDERALLY INSURED FINANCIAL INSTITUTION; AND

(II)     ALL PAYMENTS FOR THE INSURER BE MADE FROM THIS
ACCOUNT;

(5)      PROHIBIT THE MANAGING GENERAL AGENT FROM KEEPING MORE
THAN 3 MONTHS' ESTIMATED CLAIMS PAYMENTS AND ALLOCATED LOSS
ADJUSTMENT EXPENSES;

(6)      REQUIRE THE MANAGING GENERAL AGENT TO:

(I)       KEEP SEPARATE RECORDS OF BUSINESS WRITTEN FOR THE
INSURER; AND

(II)     ALLOW THE INSURER AND THE COMMISSIONER TO HAVE
ACCESS TO THOSE RECORDS;

(7)      REQUIRE THE MANAGING GENERAL AGENT TO KEEP ALL BOOKS,
RECORDS, AND ACCOUNTS IN A FORM ACCEPTABLE TO THE COMMISSIONER;

(8)      PROHIBIT THE MANAGING GENERAL AGENT FROM WHOLLY OR
PARTLY ASSIGNING THE CONTRACT;

(9)      STATE APPROPRIATE UNDERWRITING GUIDELINES, INCLUDING:

(I)       MAXIMUM ANNUAL VOLUME OF PREMIUMS;

(II)     TYPES OR CLASSIFICATIONS OF RISKS THAT MAY BE WRITTEN;

(III)    MAXIMUM LIMITS OF LIABILITY;

(IV)    APPLICABLE EXCLUSIONS;

(V)     TERRITORIAL LIMITATIONS;

(VI)    PROVISIONS FOR CANCELLATION OF POLICIES; AND

(VII)  MAXIMUM PERIODS OF POLICIES.

(10)    SUBJECT TO ALL APPLICABLE LAWS ABOUT POLICY CANCELLATION
AND NONRENEWAL, GRANT THE INSURER THE RIGHT TO CANCEL OR NONRENEW
ANY POLICY UNDERWRITTEN BY THE MANAGING GENERAL AGENT;

(11)    REQUIRE THE MANAGING GENERAL AGENT, WHEN CONDUCTING
BUSINESS OR ENTERING INTO CONTRACTS ON BEHALF OF OR FOR THE BENEFIT OF
THE INSURER, TO COMPLY WITH ALL APPLICABLE INSURANCE LAWS AND
REGULATIONS; AND

(12)    ADDRESS THE TIMELY TRANSMISSION OF DATA FOR ANY
ELECTRONIC CLAIMS FILES.

(C) INTERIM PROFITS.

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