Title IN, Insurance Code

Sec. 4053.005. RULES. The commissioner may adopt reasonable rules for the administration of this chapter. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005. SUBCHAPTER B. LICENSE REQUIREMENTS

Sec. 4053.051. LICENSE REQUIRED; EXEMPTIONS. (a) Except as provided by Subsection (b), a person, firm, or corporation may not act as a managing general agent unless the person, firm, or corporation holds a license issued under this chapter. (b) A business corporation is not requi…

Sec. 4053.053. SINGLE LICENSE REQUIRED. A license issued under this chapter entitles the license holder to represent or act for one or more insurers as a managing general agent. The license holder is not required to hold a separate license for each insurer the license holder repr…

Sec. 4053.054. NOTICE AND APPROVAL OF APPOINTMENT. (a) Each appointment to act as a managing general agent shall be reported to the commissioner on a form prescribed by the commissioner. (b) The form must include: (1) the details required by rules adopted under this chapter; (2) …

Sec. 4053.055. LAPSE OF LICENSE. If a license holder is not appointed or under appointment to represent an insurer at the time the license is subject to renewal, the license lapses and the commissioner shall deny the renewal application. Added by Acts 2003, 78th Leg., ch. 1274, S…

Sec. 4053.101. GENERAL POWERS AND DUTIES. A managing general agent acting for an insurer may: (1) receive and pass on daily reports and monthly accounts; (2) receive and be responsible for agency balances; (3) handle the adjustment of losses; or (4) appoint or direct general prop…

Sec. 4053.102. CONTRACTS. (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, re…

Sec. 4053.103. ACCOUNT REPORT. (a) At least once each calendar quarter, a managing general agent shall submit an account report to each insurer with whom the agent has a contract. (b) The account report must include, as applicable, a statement of: (1) written, earned, and unearne…

Sec. 4053.104. SEPARATE RECORDS. (a) For each insurer with which a managing general agent has a contract, the agent shall maintain separate records of the business handled by the agent for the insurer. (b) The managing general agent shall make a record required under Subsection (…

Sec. 4053.105. ESCROW ACCOUNT. (a) A managing general agent shall maintain an escrow account in a bank that: (1) is a member of the Federal Reserve System; and (2) has its accounts insured by the Federal Deposit Insurance Corporation. (b) On receipt, the managing general agent sh…

Sec. 4053.106. FIDUCIARY CAPACITY. A managing general agent holds money on behalf of an insured or insurer in a fiduciary capacity and shall properly account for that money as required by law, department rules, and a contract with an insurer. The department's examiners may audit …

Sec. 4053.107. FINANCIAL EXAMINATION. (a) As the commissioner considers necessary, a managing general agent shall submit to an examination of the agent's financial condition and the agent's compliance with the laws of this state affecting the conduct of the agent's business. (b) …

Sec. 4053.108. REQUIRED NOTICES TO DEPARTMENT. (a) On forms prescribed by the department, a managing general agent shall notify the department not later than the 30th day after the date any of the following occurs: (1) balances due to an insurer for more than 90 days exceed: (A) …

Sec. 4053.109. REINSURANCE. (a) A managing general agent may not knowingly cede, arrange, facilitate, or bind an insurer to reinsurance. (b) Notwithstanding Subsection (a), a managing general agent may bind a facultative reinsurance contract in accordance with an obligatory facul…

Sec. 4053.110. REDEMPTION OF CORPORATE SHARES. A corporation acting as a managing general agent may redeem the shares of a shareholder or a deceased shareholder: (1) on terms agreed on by the board of directors and the shareholder or the shareholder's personal representative; or …

Sec. 4053.151. DISCIPLINARY ACTION. A person, firm, or corporation that violates this chapter or a rule or order adopted under this title, including this chapter, is subject to: (1) Subchapters B and C, Chapter 4005; and (2) Chapter 82. Added by Acts 2003, 78th Leg., ch. 1274, Se…

Sec. 4053.152. GUARANTY FUND REIMBURSEMENT. (a) If a court finds by a final nonappealable judgment that a violation of this chapter by a managing general agent contributes materially to the insolvency of an insurer under which the agent held an appointment, the agent shall reimbu…