510.10 Exemption. A managing general agent who complies with sections 510.1A through 510.9 for a block of business, shall not also be required to comply with sections 510.20 and 510.21 with regard to the same block of business. 91 Acts, ch 26, §9; 91 Acts, ch 258, §57
510.11 Definitions. 1. “Life or health insurance” includes but is not limited to the following: a. Individual or group accident and sickness insurance providing coverage on an expense-incurred basis. b. An individual or group hospital or medical service contract issued pursuant to chapter 509, 514, or 514A. c. An individual or group health maintenance organization […]
510.12 Written agreement necessary. 1. A person shall not act as a third-party administrator without a written agreement between the third-party administrator and the insurer, and the written agreement shall be retained as part of the official records of both the insurer and the third-party administrator for the duration of the agreement plus five years. […]
510.13 Payment to third-party administrator. If an insurer uses the services of a third-party administrator under the terms of a written contract as required in section 510.12, payment to the third-party administrator of any premiums or charges for insurance by or on behalf of the insured shall be deemed to have been received by the […]
510.14 Maintenance of information. A third-party administrator shall maintain at its principal administrative office for the duration of the written agreement referred to in section 510.12 plus five years, adequate books and records of all transactions between it, insurers, and insured persons. The third-party administrator’s books and records shall be maintained in accordance with prudent […]
510.15 Approval of advertising. A third-party administrator may use only such advertising pertaining to the business underwritten by an insurer as has been approved by the insurer in advance of its use. 89 Acts, ch 227, §8; 2006 Acts, ch 1117, §42 Referred to in §510.12
510.16 Underwriting provision. The agreement shall provide for the underwriting or other standards pertaining to the business underwritten by the insurer. 89 Acts, ch 227, §9 Referred to in §510.12
510.17 Premium collection. 1. All insurance charges or premiums collected by a third-party administrator on behalf of or for an insurer, and return premiums received from the insurer, shall be held by the third-party administrator in a fiduciary capacity. Such funds shall be immediately remitted to the person or persons entitled to them, or shall […]
510.18 Payment of claims. A claim paid by the third-party administrator from funds collected on behalf of the insurer shall be paid only on a draft, check, or by electronic funds transfer as authorized by the insurer. 89 Acts, ch 227, §11; 96 Acts, ch 1122, §1; 2006 Acts, ch 1117, §44 Referred to in […]
510.19 Claim adjustment and settlement. The compensation paid to a third-party administrator shall not be contingent on claim experience on policies for which the third-party administrator adjusts or settles claims. This section does not prevent the compensation of a third-party administrator from being based on premiums or charges collected or number of claims paid or […]
510.1A Short title. This chapter may be cited as the “Managing General Agents Act.” 91 Acts, ch 26, §1 Referred to in §510.10
510.1B Definitions. As used in this chapter, unless the context otherwise requires: 1. “Actuary” means a person who is a member in good standing of the American academy of actuaries. 2. “Commissioner” means the commissioner of insurance. 3. “Insurer” means a person duly licensed in this state as an insurance company pursuant to this subtitle. […]
510.2 Contracts with managing general agents. 1. A domestic insurer shall not enter into a contract with a managing general agent unless the domestic insurer notifies the commissioner in writing of its intention to enter into the contract at least thirty days prior to entering into the contract or within a shorter time permitted by […]
510.20 Notification required. When the services of a third-party administrator are used, the third-party administrator shall provide a written notice, approved by the insurer, to insured individuals, advising them of the identity of and relationship among the third-party administrator, the policyholder, and the insurer. When a third-party administrator collects funds, it shall identify and state […]
510.21 Certificates — registration and renewal. 1. A person shall not act as or represent oneself to be a third-party administrator in this state, other than an adjuster licensed in this state for the kinds of business for which the person is acting as a third-party administrator, unless the person holds a current certificate of […]
510.22 Waiving of requirements. The commissioner may waive the requirements of section 510.21 for any person or class of persons. The factors taken into account in granting a waiver shall include, but are not limited to whether: 1. The person acting as a third-party administrator is primarily in a business other than that of a […]
510.23 Violations and penalties. 1. If, after hearing, the commissioner determines that a third-party administrator has violated this chapter, or chapter 507B, the commissioner may order any one or more of the sanctions or penalties set out in section 507B.7. 2. If, after hearing, the commissioner determines that a person has aided and abetted a […]
510.3 Liability of managing general agents. Notwithstanding any obligation of a director or officer of an insolvent insurer to the liquidator of the insolvent insurer, a managing general agent of a domestic insurer against whom an order of liquidation has been entered is liable for fees paid to the managing general agent prior to the […]
510.4 Licensure required — bond. 1. A person shall not act in the capacity of a managing general agent with respect to risks located in this state for an insurer licensed in this state unless the person is a licensed producer in this state. 2. A person shall not act in the capacity of a […]
510.5 Required contract provisions — limitations. 1. A person acting in the capacity of a managing general agent shall not place business with an insurer unless a written contract is in force between the parties which sets forth the responsibilities of each party. If both parties share responsibility for a particular function, the contract must […]
