Maryland § 8-209

§ 8-209.

    (a)    A managing general agent may not:

        (1)    commit the insurer to participate in insurance or reinsurance syndicates;

        (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)    take an action that would violate § 27-503 of this article if taken directly by the insurer;

        (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)    without the insurer’s prior written approval, collect any payment from a reinsurer;

        (6)    commit the insurer to a claim settlement with a reinsurer;

        (7)    employ an individual who also is employed by the insurer;

        (8)    allow an agent or employee of the managing general agent to serve on the insurer’s board of directors; or

        (9)    appoint a submanaging general agent unless:

            (i)    approval of the appointment is obtained from the Commissioner and from the insurer for whom the managing general agent acts; and

            (ii)    the submanaging general agent complies with any requirements imposed by the Commissioner under § 8-213 of this subtitle.

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

        (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:

            (i)    a list of reinsurers with which the automatic agreements are in effect;

            (ii)    the coverages and amounts or percentages that may be reinsured; and

            (iii)    commission schedules.