1. (a) A managing general agent may not:

   1. (1) commit the insurer to participate in insurance or reinsurance syndicates;
   2. (2) appoint or hire an insurance producer to solicit, procure, or negotiate insurance contracts for the insurer without ensuring that the insurance producer is licensed under Title 10, Subtitle 1 of this article;
   3. (3) take an action that would violate § 27-503 of this article if taken directly by the insurer;
   4. (4) without the insurer's written approval, pay or commit the insurer to pay a claim, net of reinsurance, that exceeds 1% of the insurer's policyholder surplus as of December 31 of the immediately preceding calendar year;
   5. (5) without the insurer's prior written approval, collect any payment from a reinsurer;
   6. (6) commit the insurer to a claim settlement with a reinsurer;
   7. (7) employ an individual who also is employed by the insurer;
   8. (8) allow an agent or employee of the managing general agent to serve on the insurer's board of directors; or

   9. (9) appoint a submanaging general agent unless:

      1. (i) approval of the appointment is obtained from the Commissioner and from the insurer for whom the managing general agent acts; and
      2. (ii) the submanaging general agent complies with any requirements imposed by the Commissioner under § 8-213 of this subtitle.

2. (b)

   1. (1) Except as provided in paragraph (2) of this subsection, a managing general agent may not bind reinsurance or retrocessions for an insurer.

   2. (2) A managing general agent may bind facultative reinsurance contracts under obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines for reinsurance both assumed and ceded, including:

      1. (i) a list of reinsurers with which the automatic agreements are in effect;
      2. (ii) the coverages and amounts or percentages that may be reinsured; and
      3. (iii) commission schedules.

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 70, § 1, eff. Oct. 1, 1997; Acts 2001, c. 731, § 1, eff. July 2, 2001.

Formerly Art. 48A, § 669.