(1) No domestic insurer may enter into a contract that grants or surrenders the control and management of the insurer, unless the commissioner gives express approval of the contract. Such contracts, once approved, may not be amended without the commissioner's approval. Any contracts between a domestic reciprocal insurer, which insurers are governed under this chapter as any other mutual, and the insurer's attorney-in-fact are subject to this subsection.
(2) Unless the contract is filed and approved by the commissioner, no domestic insurer may enter into a contract granting, or allowing a person to have the exclusive or dominant right to produce the entire insurance business for the insurer. This type of contract is considered approved, unless disapproved by the commissioner within 30 days after filing. If disapproved, the commissioner shall notify the insurer in writing of the grounds of the disapproval.
(3) The commissioner may not approve any contract under Subsection (1) or (2) that: (a) subjects the insurer to excessive charges for expenses or commissions; (b) vests any control in a person over the general affairs of the insurer to the exclusion of its board of directors or officers; (c) extends for an unreasonable length of time; or (d) contains other inequitable provisions or provisions that may jeopardize the security of policyholders.
(a) subjects the insurer to excessive charges for expenses or commissions;
(b) vests any control in a person over the general affairs of the insurer to the exclusion of its board of directors or officers;
(c) extends for an unreasonable length of time; or
(d) contains other inequitable provisions or provisions that may jeopardize the security of policyholders.
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