1.
No domestic insurer shall hereafter make any contract whereby any person is granted or is to enjoy in fact the management
of the insurer to the material exclusion of its board of directors or to have the controlling or preemptive right to produce
substantially all insurance business for the insurer, or, if an officer, director or otherwise part of the insurer's management,
is to receive any commission, bonus or compensation based upon the volume of the insurer's business or transactions, unless
the contract is filed with and not disapproved by the superintendent. The contract shall become effective in accordance with
its terms unless disapproved by the superintendent within 20 days after date of filing, subject to such reasonable extension
of time as the superintendent may require by notice given within such 20 days. Any disapproval shall be delivered to the insurer
in writing stating the grounds therefor.
[
1973, c. 585, §12 (AMD)
.]
2.
Any such contract shall provide that any such manager, producer of its business or contract holder shall within 90 days
after expiration of each calendar year furnish the insurer's board of directors a written statement of amounts received under
or on account of the contract and amounts expended thereunder during such calendar year, with specification of the emoluments
received therefrom by the respective directors, officers and other principal management personnel of the manager or producer,
and with such classification of items and further detail as the insurer's board of directors may reasonably require.
[
1969, c. 132, §1 (NEW)
.]
3.
The superintendent shall disapprove any such contract if he finds that it:
A. Subjects the insurer to excessive charges; or [1969, c. 132, §1 (NEW).]
B. Is to extend for an unreasonable length of time; or [1969, c. 132, §1 (NEW).]
C. Does not contain fair and adequate standards of performance; or [1969, c. 132, §1 (NEW).]
D. Contains other inequitable provision or provisions which impair the proper interests of stockholders or members of the insurer. [1969, c. 132, §1 (NEW).]
[
1973, c. 585, §12 (AMD)
.]
4.
The superintendent may, after a hearing held thereon, disapprove any such contract theretofore permitted to become effective,
if he finds that the contract should be disapproved on any of the grounds referred to in subsection 3.
[
1973, c. 585, §12 (AMD)
.]
5.
This section does not apply as to contracts entered into prior to January 1, 1970, or to amendment of such contracts other
than extensions thereof.
[
1973, c. 625, §149 (AMD)
.]
6.
This section shall not be deemed to prohibit receipt of commissions on insurance written personally by a director or officer
who is duly licensed and regularly engaged in business as an insurance agent or broker; or to prohibit receipt of vested commissions
by a director or officer based upon insurance business theretofore written by him.
[
1969, c. 132, §1 (NEW)
.]
SECTION HISTORY
1969, c. 132, §1 (NEW).
1973, c. 585, §12 (AMD).
1973, c. 625, §149 (AMD).
Data for this page extracted on 10/16/2012 08:29:52.