58-30-128. Settling claims--Content of contract. If the managing general agent may settle claims on behalf of the insurer, the following shall be included in the contract:
(1) All claims shall be reported to the company in a timely manner;
(2) A copy of the claim file shall be sent to the insurer at its request or as soon as it becomes known that the claim:
(a) Involves a coverage dispute;
(b) May exceed the managing general agent's claims settlement authority;
(c) Is open for more than six months; or
(d) Is closed by payment of an amount set by the company;
(3) All claim files are the joint property of the insurer and managing general agent. Upon an order of liquidation of the insurer, the files shall become the sole property of the insurer or its estate and the managing general agent shall have reasonable access to and the right to copy the files on a timely basis;
(4) Any settlement authority granted to the managing general agent may be terminated for cause upon the insurer's written notice to the managing general agent or upon the termination of the contract. The insurer may suspend the settlement authority during the pendency of any dispute regarding the cause for termination;
(5) The claims settlement authority and limitations of the managing general agent.
The director may initially and at least annually review the amount for settling claims or payment of claims and direct the amount be changed.
Source: SL 1992, ch 353, § 5.
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