Foreign insurer oversight requires annual audits, on-site reviews, reserve certification, and limits on MGA binding authority. Foreign insurers that execute a BAA with an MGA must maintain operational oversight through periodic compliance checks. The insurer is required to conduct an independent annual audit of the MGA's records to confirm compliance with the BAA and net worth requirements, and to carry out on-site reviews of underwriting and claims processing at least twice a year. Where an MGA establishes loss reserves, the insurer must also obtain an annual independent actuary's opinion on reserve adequacy.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Foreign insurer oversight requires annual audits, on-site reviews, reserve certification, and limits on MGA binding authority.
Foreign insurers that execute a BAA with an MGA must maintain operational oversight through periodic compliance checks. The insurer is required to conduct an independent annual audit of the MGA's records to confirm compliance with the BAA and net worth requirements, and to carry out on-site reviews of underwriting and claims processing at least twice a year. Where an MGA establishes loss reserves, the insurer must also obtain an annual independent actuary's opinion on reserve adequacy.
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