Oklahoma § 36-1475 - Financial examination and on-site reviews - Binding

§ 36-1475. Financial examination and on-site reviews - Binding

authority for contracts - Notice of appointment or termination Review of books and records - Appointments to board.

A. The insurer shall have on file an independent financial

examination, in a form acceptable to the Insurance Commissioner, of

each managing general agent with which it has done business.

B. The insurer shall periodically, at least semi-annually,

conduct an on-site review of the underwriting and claims processing

operations of the managing general agent.

C. Binding authority for all reinsurance contracts or

participation in insurance or reinsurance syndicates shall rest with

an officer of the insurer, who shall not be affiliated with the

managing general agent.

D. Within thirty (30) days of entering into or termination of a

contract with a managing general agent, the insurer shall provide

written notification of such appointment or termination to the

Oklahoma Statutes - Title 36. Insurance

Insurance Commissioner. Notices of appointment of a managing

general agent shall include:

1. A statement of duties which the applicant is expected to

perform on behalf of the insurer;

2. The lines of insurance for which the applicant is to be

authorized to act; and

3. Any other information the Commissioner may request.

E. An insurer shall review its books and records each quarter

to determine if any agent or broker has become a managing general

agent as defined in Section 2 of this act. If the insurer

determines that an agent or broker has become a managing general

agent, the insurer shall promptly notify the agent or broker and the

Insurance Commissioner of such determination, and the insurer and

agent or broker shall fully comply with the provisions of this act

within thirty (30) days of such notification.

F. An insurer shall not appoint to its board of directors an

officer, director, employee, sub-agent, sub-broker or controlling

shareholder of its managing general agents. This subsection shall

not apply to relationships governed by the insurance holding company

act, Section 1651 et seq. of this title.

Added by Laws 1991, c. 134, § 5, eff. July 1, 1991.