{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-1474","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-1474","heading":"Written contract with insurer required - Minimum","body":"provisions.\n\nNo person acting in the capacity of a managing general agent\n\nshall place business with an insurer unless there is in force a\n\nwritten contract between the parties which sets forth the\n\nresponsibilities of each party, and where both parties share\n\nresponsibility for a particular function, specifies the division of\n\nsuch responsibilities, and which contains the following minimum\n\nprovisions:\n\n1. The insurer may terminate the contract for cause upon thirty\n\n(30) days' written notice to the managing general agent and the\n\nInsurance Commissioner. The insurer may suspend the underwriting\n\nauthority of the managing general agent during the pendency of any\n\ndispute regarding the cause for termination;\n\n2. The managing general agent shall render accounts to the\n\ninsurer detailing all transactions and shall remit all funds due\n\nunder the contract to the insurer on not less than a monthly basis;\n\n3. All funds collected for the account of an insurer shall be\n\nheld by the managing general agent in a fiduciary capacity in a bank\n\nwhich is a member of the Federal Reserve System. This account shall\n\nbe used for all payments on behalf of the insurer. The managing\n\ngeneral agent may retain no more than three (3) months' estimated\n\nclaims payment and allocated loss adjustment expenses;\n\n4. Separate records of business written by the managing general\n\nagent shall be maintained. The insurer shall have access to and the\n\nright to copy all accounts and records related to its business in a\n\nform usable by the insurer. The Insurance Commissioner shall have\n\naccess to all books, bank accounts and records of the managing\n\ngeneral agent in a form usable to the Commissioner. Such records\n\nshall be retained according to the provisions of subsection E of\n\nSection 1435.13 of this title;\n\n5. The contract may not be assigned in whole or part by the\n\nmanaging general agent;\n\n6. The contract shall contain appropriate underwriting\n\nguidelines including:\n\na. the maximum annual premium volume,\n\nb. the basis of the rates to be charged,\n\nc. the types of risks which may be written,\n\nd. maximum limits of liability,\n\ne. applicable exclusions,\n\nf. territorial limitations,\n\ng. policy cancellation provisions, and\n\nh. the maximum policy period;\n\n7. The insurer shall have the right to cancel or not renew any\n\npolicy of insurance subject to applicable laws and regulations;\n\n8. If the contract permits the managing general agent to settle\n\nclaims on behalf of the insurer:\n\na. all claims must be reported to the company in a timely\n\nmanner,\n\nb. a copy of the claim file shall be sent to the insurer\n\nat its request or as soon as it becomes known that the\n\nclaim:\n\n(1) has the potential to exceed a threshold\n\ndetermined by the Insurance Commissioner or\n\nexceeds the limit set by the company, whichever\n\nis less,\n\n(2) involves a coverage dispute,\n\n(3) may exceed the managing general agent's claims\n\nsettlement authority,\n\n(4) is open for more than six (6) months, or\nr as soon as it becomes known that the\n\nclaim:\n\n(1) has the potential to exceed a threshold\n\ndetermined by the Insurance Commissioner or\n\nexceeds the limit set by the company, whichever\n\nis less,\n\n(2) involves a coverage dispute,\n\n(3) may exceed the managing general agent's claims\n\nsettlement authority,\n\n(4) is open for more than six (6) months, or\n\n(5) is closed by payment of an amount set by the\n\nInsurance Commissioner or an amount set by the\n\ncompany, whichever is less,\n\nc. all claim files will be the joint property of the\n\ninsurer and managing general agent. However, upon an\n\norder of liquidation of the insurer, such files shall\n\nbecome the sole property of the insurer or its estate\n\nand the managing general agent shall have reasonable\n\naccess to and the right to copy the files on a timely\n\nbasis,\n\nd. any settlement authority granted to the managing\n\ngeneral agent may be terminated for cause upon the\n\ninsurer's written notice to the managing general agent\n\nor upon the termination of the contract. The insurer\n\nmay suspend the settlement authority during the\n\npendency of any dispute regarding the cause for\n\ntermination, and\n\ne. nothing in this section shall be construed to give the\n\nInsurance Commissioner authority to settle or adjust\n\nclaims on behalf of the insurer;\n\n9. Where electronic claim files are in existence, the contract\n\nshall address the timely transmission of the data;\n\n10. If the contract provides for a sharing of interim profits\n\nby the managing general agent, and the managing general agent has\n\nthe authority to determine the amount of the interim profits by\n\nestablishing loss reserves or controlling claim payments, or in any\n\nother manner, interim profits will not be paid to the managing\n\ngeneral agent on the lines of business written by the managing\n\ngeneral agent until at least ninety-seven percent (97%) of the\n\nultimate loss has been developed for those lines of business, based\n\non an opinion of the actuary who certifies the adequacy of the loss\n\nreserves for the insurer;\n\n11. The managing general agent shall not:\n\na. bind reinsurance or retrocessions on behalf of the\n\ninsurer, except that the managing general agent may\n\nbind facultative reinsurance contracts pursuant to\n\nobligatory facultative agreements if the contract with\n\nthe insurer contains reinsurance underwriting\n\nguidelines including, for both reinsurance assumed and\n\nceded:\n\n(1) a list of reinsurers with which such automatic\n\nagreements are in effect,\n\n(2) the coverages and amounts or percentages that may\n\nbe reinsured, and\n\n(3) commission schedules,\n\nb. commit the insurer to participate in insurance or\n\nreinsurance syndicates,\n\nc. appoint any agent or broker without assuring that the\n\nagent or broker is lawfully licensed to transact the\n\ntype of insurance for which he is appointed,\n\nd. without prior approval of the insurer, pay or commit\n\nthe insurer to pay a claim over a specified amount,\n\nnet of reinsurance, which shall not exceed one percent\n\n(1%) of the insurer's policyholder's surplus as of\n\nDecember 31 of the last completed calendar year,\n\ne. collect any payment from a reinsurer or commit the\n\ninsurer to any claim settlement with a reinsurer\n\nwithout prior approval of the insurer. If prior\n\napproval is given, a report shall be promptly\n\nforwarded to the insurer,\n\nf. permit its sub-agent or sub-broker to serve on the\n\ninsurer's board of directors,\n\ng. jointly employ an individual who is employed with the\n\ninsurer, or\n\nh. appoint a sub-managing general agent.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"122f9b590766234718c53eca3bf720645754c9a9e743b82689e205a964b30557","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-1473","next":"us-ok/okla.-stat.-tit.-36-36-1475"},"notice":"GroundRules: Original legal text. Not legal advice."}