§431:9C-102 - Licensure.

     §431:9C-102  Licensure.  (a)  No person, firm, association, or corporation shall act as a managing general agent, with respect to risks located in this State for an insurer licensed in this State, unless licensed as a producer in this State.

     (b)  No person, firm, association, or corporation shall act as a managing general agent, representing an insurer domiciled in this State with respect to risks located outside this State, unless licensed as a producer in this State.

     (c)  The commissioner shall require the managing general agent to furnish a bond in an amount equal to $100,000 or ten per cent of annual gross direct written premiums, whichever is greater, with an insurance company licensed to do business within the State or with an insurance company approved by the commissioner, for the protection of the insurer.  Each managing general agent shall provide the commissioner with:

     (1)  Proof of the bond at the time of the initial application for licensure;

     (2)  Appropriate documentation at the time of each renewal to show that the bond continues to be in effect or that a new bond has been secured; and

     (3)  Any other report required by the commissioner.

     (d)  The commissioner shall require the managing general agent to maintain an errors and omissions policy in an amount equal to $1,000,000 or twenty-five per cent of annual gross direct written premiums, whichever is greater, with an insurance company licensed to do business within the State or an insurance company approved by the commissioner.  Each managing general agent shall provide the commissioner with:

     (1)  Proof of the policy at the time of the initial application for licensure;

     (2)  Appropriate documentation at the time of each renewal to show that the policy continues to be in effect or that a new policy has been secured; and

     (3)  Any other report required by the commissioner. [L 2002, c 155, pt of §2; am L 2003, c 212, §70; am L 2006, c 189, §7]