Ch. 36                                          1995 LAWS OF MARYLAND.

Defined terms: "Commissioner" § 1-101
"Insurance" § 1-101
"Insurance contract" § 1-101
"Insurer" § 1-101
"Managing general agent" § 8-201
"Reinsurance" § 1-101

8-210. DUTIES OF INSURER.

(A)     INDEPENDENT FINANCIAL EXAMINATIONS..

(1)      AN INSURER SHALL MAINTAIN INDEPENDENT FINANCIAL
EXAMINATIONS, IN A FORM ACCEPTABLE TO THE COMMISSIONER, OF EACH
MANAGING GENERAL AGENT WITH WHOM THE INSURER HAS DONE BUSINESS.

(2)      THE INSURER SHALL KEEP RECORDS FOR AT LEAST 5 YEARS.

(B)      OPINION OF ACTUARY AS TO LOSS RESERVES.

(1)      IF, BY CONTRACT, AN INSURER ALLOWS A MANAGING GENERAL
AGENT TO MAINTAIN LOSS RESERVES, THE INSURER ANNUALLY SHALL GET AN
OPINION, ATTESTING TO THE ADEQUACY OF THE LOSS RESERVES ESTABLISHED,
FROM AN INDEPENDENT ACTUARY WHO IS A MEMBER IN GOOD STANDING OF THE
AMERICAN ACADEMY OF ACTUARIES.

(2)      THE INSURER SHALL KEEP THE REPORT OF THE ACTUARY FOR AT
LEAST 5 YEARS.

(C)     ON-SITE REVIEW.

AT LEAST TWICE A YEAR, AN INSURER SHALL CONDUCT AN ON-SITE REVIEW
OF THE UNDERWRITING AND CLAIMS PROCESSING OPERATIONS OF ITS MANAGING
GENERAL AGENT.

(D)     ENTERING INTO OR TERMINATING CONTRACT WITH MANAGING
GENERAL AGENT.

(1)      WITHIN 30 DAYS AFTER ENTERING INTO OR TERMINATING A
CONTRACT WITH A MANAGING GENERAL AGENT, AN INSURER SHALL NOTIFY THE
COMMISSIONER IN WRITING OF DOING SO.

(2)      THE NOTICE OF ENTERING INTO A CONTRACT SHALL INCLUDE:

(I)      A STATEMENT OF THE DUTIES AND RESPONSIBILITIES OF THE
MANAGING GENERAL AGENT;

(II)     THE LINES OF INSURANCE THAT THE MANAGING GENERAL
AGENT IS CONTRACTUALLY AUTHORIZED TO NEGOTIATE, PROCURE, OR BIND FOR
THE INSURER;

(III)    A COPY OF THE CONTRACT; AND

(IV)    ANY OTHER INFORMATION OR DOCUMENTATION THAT THE
COMMISSIONER REQUESTS.

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