Ohio § 3905.74

§ 3905.74.

(A) The insurer shall have on file, in a form acceptable to the superintendent of insurance,

an independent financial examination of each managing general agent with which it

has done business. (B) If a managing general agent establishes loss reserves, the insurer annually shall

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.  This annual opinion is in addition to any other required loss reserve certification. (C) The insurer shall conduct not less frequently than twice a year an on-site review

of the underwriting and claims processing operations of the managing general agent. (D) Binding authority for all reinsurance contracts or participation in insurance or

reinsurance syndicates shall be vested in an officer of the insurer who is not affiliated

with the managing general agent. (E) Within thirty days of entering into or terminating a contract with a managing general

agent, the insurer shall provide written notification of the appointment or termination

to the superintendent.  Notices of appointment of a managing general agent shall include a statement of

duties which the applicant is expected to perform on behalf of the insurer, the lines

of insurance the applicant will manage, and any other information the superintendent

may request. (F) An insurer shall review its books and records each quarter to determine if any producer

has become a managing general agent.  If the insurer determines that a producer has become a managing general agent, the

insurer, within sixty days, shall provide written notice of the determination to the

producer and the superintendent.  The insurer and producer shall comply with sections 3905.72 to 3905.75 of the Revised Code within thirty days of receipt of the notice. (G) No insurer shall appoint to its board of directors its managing general agent or

an officer, director, employee, producer, or controlling shareholder of its managing

general agent.