Idaho State Statutes - Idaho Attorney Directory

(1) The insurer shall have on file an
independent financial examination, in a form acceptable to the director, of
each MGA with whom it has done business.
(2) If a MGA establishes loss reserves, the insurer shall annually obtain
the opinion of an actuary attesting to the adequacy of loss reserves
established for losses incurred and outstanding on business produced by the
MGA. This is in addition to any other required loss reserve certification.
(3) The insurer shall conduct an on-site review of the underwriting and
claims processing operations of the MGA on a semiannual or more frequent
basis.
(4) 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 MGA.
(5) Within thirty (30) days of entering into or termination of a contract
with a MGA, the insurer shall provide written notification of such appointment
or termination to the director. Notices of appointment of a MGA shall include:
(a) A statement of duties which the applicant is expected to perform on
behalf of the insurer;
(b) The lines of insurance for which the applicant is to be authorized to
act; and
(c) Any other information the director may request.
(6) An insurer shall review its books and records each quarter to
determine if any agent has become, by operation of the provisions of section
41-1502(3) and (4), Idaho Code, a MGA as defined in that section. If the
insurer determines that an agent has become a MGA pursuant to the above, the
insurer shall promptly notify the agent and the director of such determination
and the insurer and agent must fully comply with the provisions of this
chapter within thirty (30) days.
(7) An insurer shall not appoint to its board of directors an officer,
director, employee, agent or controlling shareholder of its MGA. The
provisions of this subsection shall not apply to relationships governed by
chapter 38, title 41, Idaho Code.

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