Ala. Admin. Code r. 482-1-106-.05

Current through Register Vol. 42, No. 10, July 31, 2024

Section 482-1-106-.05 - What Must Be Certified And Filed Annually

(1) Each insurer which has appointed a managing general agent (MGA) shall annually file, for each appointed managing general agent, each of the following, as applicable:

(a) A completed certification on Form AL-MGA-4, whereby the insurer will certify the existence or performance of the continued obligations imposed by Section 27-6A-5, Code of Ala. 1975.

(b) A copy of the report issued at the conclusion of the annual independent financial examination of the MGA as of the end of the prior fiscal or calendar year. The independent financial examination shall be an audit by a certified public accountant, as required by Section 27-6A-5(1), Code of Ala. 1975, and should be filed even if the MGA appointment is terminated prior to year-end or is allowed to expire at year-end.

(c) If the MGA establishes loss reserves, a copy of the most recent annual opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the MGA, as required by Section 27-6A-5(2), Code of Ala. 1975.

(2)

(a) Each year, on or about October 1, the Department will send to every insurer with an appointed Managing General Agent (MGA) a copy of the MGA Certification Form (Form AL-MGA-4), along with the instructions for renewing the MGA appointment for the next year.

(b) It is the insurer's responsibility to correctly complete and file this annual certification prior to December 31. Any incomplete or incorrect Certification Form (Form AL-MGA-4) will not be considered filed until in compliance with all instructions.

(c) Any MGA appointment not renewed as required above shall be deemed to have expired at midnight on December 31.

(3) If the independent financial examination report submitted reflects the MGA has a negative shareholder's equity, the insurer must also submit a statement acknowledging this along with a copy of the insurer's supervision plan for the MGA.

Ala. Admin. Code r. 482-1-106-.05

New Rule: August 1, 1994; effective August 11, 1994. Amended: August 19, 2002; effective August 29, 2002. Filed with LRS August 19, 2002. Rule is not subject to the Alabama Administrative Procedure Act. Amended: October 9, 2013; effective October 19, 2013. Filed with LRS October 9, 2013. Rule is not subject to the Alabama Administrative Procedure Act.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §2 7-2-17 & §20, Act 93-675.