Contract Compliance Checklist Template - Free Download | Page 3
4.9, 4301 votes
Please vote for this template if it helps you.
Where electronic claims files are in existence, the contract must address the
timely transmission of the data in those files.
If the contract provides for a sharing interim profits by the MGA, and the MGA
has the authority to determine the amount of the interim profits by establishing
loss reserves or controlling claim payments, or in any other manner, interim
profits will not be paid to the MGA:
(a) Until one (1) year after the profits are earned, for property insurance
business, and five (5) years after the profits are earned on casualty
(b) Until the profits have been verified pursuant to section eight (8) of
The MGA may not do any of the following:
(a) Bind reinsurance or retrocession's on behalf of the insurer, except
that the MGA may bind facultative reinsurance contracts pursuant to
obligatory facultative agreements if the contract with the insurer
contains reinsurance underwriting guidelines, including for both
reinsurance assumed and ceded, a list of reinsurers with which the
automatic agreements are in effect, the coverage and amounts or
percentages that may be reinsured, and commission schedules.
(b) Commit the insurer to participate in insurance or reinsurance
(c ) Appoint any producer without assuring that the producer is
lawfully licensed to transact the type of insurance for which the
producer is appointed.
(d) Without prior approval of the insurer, pay or commit the insurer to
pay a claim over a specified amount, net of reinsurance, which may
not exceed one percent (1%) of the insurer's policyholder's surplus as
of December 31st of the last completed calendar year before the
payment or commitment.
(e) Collect any payment from a reinsurer or commit the insurer to any
claim settlement with a reinsurer without prior approval of the
insurer. If prior approval is given, a report must be promptly
forwarded to the insurer.
(f) Permit its subproducer to serve on the insurer's board of directors.
(g) Jointly employ an individual who is employed with the insurer,
unless the MGA and the insurer are affiliated in an insurance holding
(h) Appoint a sub-MGA