(1) The insurer shall have on file an independent financial examination, in a form acceptable to the commissioner, of each managing general agent with which the insurer has done business.
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Terms Used In Utah Code 31A-23a-603

  • Actuary: is a s defined by the commissioner by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. See Utah Code 31A-1-301
  • board of directors: means the group of persons with responsibility over, or management of, a corporation, however designated. See Utah Code 31A-1-301
  • Contract: A legal written agreement that becomes binding when signed.
  • Form: means one of the following prepared for general use:
              (74)(a)(i) a policy;
              (74)(a)(ii) a certificate;
              (74)(a)(iii) an application;
              (74)(a)(iv) an outline of coverage; or
              (74)(a)(v) an endorsement. See Utah Code 31A-1-301
  • Insurance: includes :
              (96)(b)(i) a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
              (96)(b)(ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
              (96)(b)(iii) a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
  • Insurer: is a s defined in Section 31A-1-301, except that the following persons or similar persons are not insurers for purposes of Part 7, Producer Controlled Insurers:
         (4)(a) a risk retention group as defined in:
              (4)(a)(i) the Superfund Amendments and Reauthorization Act of 1986, Pub. See Utah Code 31A-23a-102
  • Managing general agent: means a person that:
              (6)(a)(i) manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office;
              (6)(a)(ii) acts as an agent for the insurer whether it is known as a managing general agent, manager, or other similar term;
              (6)(a)(iii) produces and underwrites an amount of gross direct written premium equal to, or more than, 5% of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year:
                   (6)(a)(iii)(A) with or without the authority;
                   (6)(a)(iii)(B) separately or together with an affiliate; and
                   (6)(a)(iii)(C) directly or indirectly; and
              (6)(a)(iv)
                   (6)(a)(iv)(A) adjusts or pays claims in excess of an amount determined by the commissioner; or
                   (6)(a)(iv)(B) negotiates reinsurance on behalf of the insurer. See Utah Code 31A-23a-102
  • producer: means a person licensed or required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Utah Code 31A-1-301
  • Reinsurance: means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. See Utah Code 31A-1-301
(2)

     (2)(a) If a managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent.
     (2)(b) The requirement of Subsection (2)(a) is in addition to any other required loss reserve certification.
(3) The insurer shall at least semiannually conduct an on-site review of the underwriting and claims processing operations of the managing general agent.
(4) Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who may not be affiliated with the managing general agent.
(5)

     (5)(a) Within 30 days after entering into or terminating a contract with a managing general agent, the insurer shall provide written notification of the appointment or termination to the commissioner.
     (5)(b) A notice of appointment of a managing general agent shall include:

          (5)(b)(i) a statement of duties that the applicant is expected to perform on behalf of the insurer;
          (5)(b)(ii) the lines of insurance for which the applicant is to be authorized to act; and
          (5)(b)(iii) any other information the commissioner may request.
(6)

     (6)(a) An insurer shall review the insurer’s books and records each quarter to determine if any producer, as defined in Section 31A-1-301, has become a managing general agent as defined in Section 31A-23a-102.
     (6)(b) If the insurer determines that a producer has become a managing general agent:

          (6)(b)(i) the insurer shall promptly notify the producer and the commissioner of the determination; and
          (6)(b)(ii) the insurer and producer shall fully comply with the provisions of this chapter within 30 days.
(7)

     (7)(a) An insurer may not appoint officers, directors, employees, subproducers, or controlling shareholders of the insurer’s managing general agents to the insurer’s board of directors.
     (7)(b) This Subsection (7) does not apply to relationships governed by:

          (7)(b)(i) Chapter 16, Insurance Holding Companies; or
          (7)(b)(ii) Chapter 23a, Part 7, Producer Controlled Insurers, if it applies.
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