Mandatory provisions of binding authority agreement (BAA)

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.... like termination for cause, suspension of authority, monthly accounting/remittance, fiduciary capacity, three- month rule, the right of foreign insurer to cancel or non-renew any policy of insurance subject to the applicable laws and regulations and non-assignment. 2. Scope of Authority: Explicitly state classes of direct insurance business, territorial limits, and maximum limits of liability ....

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.... limits of Claims Authority Delineation, as agreed - (1) Processing Only: MGA verifies loss but cannot authorize payment. (2) Settlement Authority: MGA can authorize payment up to an agreed amount at claim level and aggregate. 7. Fiduciary Stewardship: Mandatory trust account segregation and remittance 'without delay' rules. 8. Loss Fund: Limit of the loss fund to b....