Texas Insurance Code 4053.102 – Contracts
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(a) An insurer may not accept business from a managing general agent and the agent may not place business with the insurer without a written contract that addresses:
(1) the responsibilities of each party;
(2) cancellation or termination;
(3) reports, records, and auditing; and
(4) if applicable:
(A) premium volume limits;
(B) appointment or cancellation of agents;
(C) claims settlement;
(D) underwriting; and
(E) reinsurance.
(b) The commissioner may adopt rules establishing requirements for a contract with a managing general agent.
Terms Used In Texas Insurance Code 4053.102
- Contract: A legal written agreement that becomes binding when signed.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) A contract with a managing general agent and a report or record submitted under that contract are subject to review by the department under Section 38.001.