Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-106 - MANAGING GENERAL AGENTS
Section 482-1-106-.05 - What Must Be Certified And Filed Annually
Universal Citation: AL Admin Code R 482-1-106-.05
Current through Register Vol. 42, No. 5, February 29, 2024
(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.
Author: Commissioner of Insurance
Statutory Authority: Code of Ala. 1975, §2 7-2-17 & §20, Act 93-675.
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