PARRIS N. GLENDENING, Governor

Ch. 36

(E)     BOARD OF DIRECTORS.

UNLESS THE RELATIONSHIP BETWEEN AN INSURER AND MANAGING GENERAL
AGENT IS CONTROLLED BY AND DISCLOSED UNDER TITLE 7, SUBTITLE 6 OR 7 OF
THIS ARTICLE, THE INSURER MAY NOT HAVE ON ITS BOARD OF DIRECTORS AN
OFFICER, DIRECTOR, EMPLOYEE, AGENT, OR SHAREHOLDER OF ITS MANAGING
GENERAL AGENT.

(F)     DETERMINATION OF NEW MANAGING GENERAL AGENT.

(1)     EACH INSURER SHALL REVIEW ITS BOOKS AND RECORDS EACH
QUARTER TO DETERMINE IF ANY AGENT HAS BECOME A MANAGING GENERAL
AGENT.

(2)     IF THE INSURER DETERMINES THAT AN AGENT HAS BECOME A
MANAGING GENERAL AGENT:

(I)      THE INSURER PROMPTLY SHALL NOTIFY THE AGENT AND THE
COMMISSIONER OF THE DETERMINATION; AND

(II)    THE INSURER AND AGENT MUST COMPLY FULLY WITH THE
PROVISIONS OF THIS SUBTITLE WITHIN 30 DAYS AFTER THE DETERMINATION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 670 and 665(1).

In subsection (b)(2) of this section, the phrase "of the actuary" is added to
modify the word "report" to clarify that the report is the opinion of the
actuary required by subsection (b)(1) of this section.

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

8-211. ACTS OF MANAGING GENERAL AGENT DEEMED ACTS OF INSURANCE;
INSOLVENCY OF MANAGING GENERAL AGENT.

(A)  ACTS OF MANAGING GENERAL AGENT DEEMED ACTS OF INSURER.

THE ACTS OF A MANAGING GENERAL AGENT ARE DEEMED TO BE THE ACTS OF
THE INSURER FOR WHOM THE MANAGING GENERAL AGENT IS ACTING.

(B)  INSOLVENCY OF MANAGING GENERAL AGENT.

IF A MANAGING GENERAL AGENT BECOMES INSOLVENT, THE OBLIGATIONS OF
THE MANAGING GENERAL AGENT WITH RESPECT TO POLICYHOLDERS OF AN
INSURER SHALL BE ASSUMED BY THAT INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 672 and 671(a).

Defined terms: "Insurer" § 1-101

"Managing general agent" § 8-201

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