Binding authority agreements require written terms, fiduciary controls, underwriting limits, reporting duties, and oversight safeguards for managing general agents.

Binding authority agreements for managing general agents must be written and must include termination for cause, suspension of authority, monthly accounting and remittance, fiduciary handling of funds, the three-month rule, cancellation or non-renewal rights, and non-assignment. The agreement must define the scope of direct insurance business, territorial limits, liability caps, fit and proper requirements, ownership-link disclosures, underwriting boundaries, claims authority limits, trust account segregation, bordereau reporting, surplus-trigger notifications, data portability, audited financials, and periodic on-site reviews.

---

---

---