Common use of Mandatory Provisions Clause in Contracts

Mandatory Provisions. Notwithstanding any provision in this managing general agent’s contract or any other written, oral or parol agreement to the contrary, the following provisions are binding upon the insurer and the managing general agent: (1) The insurer may terminate the contract for cause upon written notice to the managing general agent. The insurer may suspend the underwriting authority of the managing general agent during the pendency of any dispute regarding the cause for termination. Nothing in this section is intended to relieve the managing general agent or insurer of any other contractual obligation; (2) The managing general agent will render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis; (3) All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity in a segregated account in a bank which is a member of the Federal Reserve System. This account shall be used for all payments on behalf of the insurer and for no other purpose. The managing general agent may retain no more than three (3) months, estimated claims payments and allocated loss adjustment expenses; (4) Separate records of business written by the managing general agent shall be maintained. The insurer shall have access and right to copy all accounts and records related to its business in a form usable by the insurer, and the Insurance Commissioner of the State of Arkansas shall have access to all books, bank accounts and records of the managing general agent in a form usable to the Commissioner. Such records shall be retained for a minimum of five (5) years following the transactions to which the records relate. The insurer shall periodically, and not less often than semiannually, have access to conduct an on-site review of the underwriting and claims processing operations of the managing general agent; (5) This contract may not be assigned in whole or part by the managing general agent; (6) Appropriate underwriting guidelines are established in Article III of this managing general agent’s agreement; (7) The insurer shall retain the right to cancel or not renew any policy of insurance subject to the applicable laws and regulations concerning the cancellation and nonrenewal of insurance policies; (8) This managing general agent’s contract (does/does not) permit the managing general agent to settle claims on behalf of the insurer. If this managing general agent’s contract permits the managing general agent to settle claims on behalf of the insurer: (a) All claims must be reported to the insurer in a timely manner; (b) A copy of the claim file will be sent to the insurer at its request or as soon as it becomes known that the claim: (i) Has the potential to exceed $25,000 or exceeds the limit set by the insurer, ($ ), whichever is less; (ii) Involves a coverage dispute; (iii) May exceed the managing general agent’s claims settlement authority; (iv) Is open for more than six (6) months; or (v) Is closed by payment of $25,000 or the amount set by the insurer, whichever is less; (c) All claim files will be the joint property of the insurer and managing general agent. However, upon an order of liquidation of the insurer such files shall become the sole property of the insurer or its estate, but the managing general agent shall have reasonable access to and the right to copy the files on a timely basis; (d) 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 the dispute regarding the cause of termination. Nothing in this paragraph is intended to relieve the managing general agent or insurer or any other contractual obligation; and (e) Article III contains other provisions relating to the settlement of claims by the managing general agent on behalf of the insurer. (9) Electronic claims files (are/are not) in existence. If such files are in existence, Article III of this managing general agent’s contract will contain provisions which govern the timely transmission of the data by the managing general agent to the insurer. (10) This contract (does/does not) provide for a sharing of interim profits by the managing general agent. If this contract does provide for such sharing, then; (a) Provisions for such sharing are described in Article III of this managing general agent’s contract; and (b) If the managing general agent has the authority to determine the amount of the interim profits by establishing loss reserves or controlling claim payments, or in any other manner, interim profits will not be paid to the managing general agent until one year after they are earned for property insurance business and five years after they are earned on the casualty business and not until the profits have been verified pursuant to the Arkansas Managing General Agents Act. (11) The managing general agent shall not: (a) Bind reinsurance or retrocessions on behalf of the insurer. The managing general agent however (may/may not) bind facultative reinsurance contracts pursuant to obligatory facultative agreements. If the managing general agent is permitted to bind facultative reinsurance contracts, this managing general agent’s contract will contain in Article III reinsurance underwriting guidelines, including, for both reinsurance assumed and ceded, a list of reinsurers with whom such automatic agreement are in effect, the coverages and amounts or percentages that may be reinsured and commission schedules; (b) Commit the insurer to participate in insurance or reinsurance syndicates; (c) Appoint any agent without assuring that the agent is lawfully licensed to transact the type of insurance for which he is appointed or for which appointment is requested; (d) Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which shall not exceed one percent of the insurer’s policyholder’s surplus as of December 31 of the last completed calendar year; (e) Collect any payment from a reinsurer, or commit the insurer to any claim settlement with a reinsurer, without prior approval of the insurer. If prior approval is give, a report must be promptly forwarded to the insurer; (f) Permit its subagent to serve on the insurer’s board of directors; (g) Jointly employ an individual who is employed with the insurer; or (h) Appoint a managing general subagent.

Mandatory Provisions. Notwithstanding any provision The apartment specified in the Section 1.1 of this managing general agent’s contract or any other writtenis located in the newly constructed building managed by a specialized maintenance company, oral or parol agreement the “Attendant”. According to this contract upon accrual of the ownership to the contraryProperty the Buyer becomes co-owner of a common share property of a high rise building, and obtains the following provisions are binding upon rights and assumes responsibilities with regard to the insurer common share property. Accordingly, a contract for provision of paid services (service contract) shall be signed between the Buyer and the managing general agent: Seller. Existing valid certificate of ownership (1use) The insurer may terminate confirming transfer of ownership of the Property to the Buyer shall serve as a valid ground to deem the contract for cause upon written notice to provision of paid services (service contract) executed, irrespective of whether such contract has actually been signed on paper or not. Terms of Part 6 of this contract shall remain in force and mandatory for performance for the managing general agent. The insurer may suspend the underwriting authority future owners of the managing general agent during Property, shall the pendency of any dispute regarding Buyer sell the cause for terminationapartment. Nothing in this section is intended Services to relieve the managing general agent or insurer of any other contractual obligation; (2) The managing general agent will render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis; (3) All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity in a segregated account in a bank which is a member of the Federal Reserve System. This account shall be used for all payments on behalf of the insurer and for no other purpose. The managing general agent may retain no more than three (3) months, estimated claims payments and allocated loss adjustment expenses; (4) Separate records of business written by the managing general agent shall be maintained. The insurer shall have access and right to copy all accounts and records related to its business in a form usable by the insurer, and the Insurance Commissioner of the State of Arkansas shall have access to all books, bank accounts and records of the managing general agent in a form usable to the Commissioner. Such records shall be retained for a minimum of five (5) years following the transactions to which the records relate. The insurer shall periodically, and not less often than semiannually, have access to conduct an on-site review of the underwriting and claims processing operations of the managing general agent; (5) This contract may not be assigned in whole or part by the managing general agent; (6) Appropriate underwriting guidelines are established in Article III of this managing general agent’s agreement; (7) The insurer shall retain the right to cancel or not renew any policy of insurance subject to the applicable laws and regulations concerning the cancellation and nonrenewal of insurance policies; (8) This managing general agent’s contract (does/does not) permit the managing general agent to settle claims on behalf of the insurer. If this managing general agent’s contract permits the managing general agent to settle claims on behalf of the insurer: (a) All claims must be reported to the insurer in a timely manner; (b) A copy of the claim file will be sent to the insurer at its request or as soon as it becomes known that the claim: (i) Has the potential to exceed $25,000 or exceeds the limit set by the insurer, ($ ), whichever is less; (ii) Involves a coverage dispute; (iii) May exceed the managing general agent’s claims settlement authority; (iv) Is open for more than six (6) months; or (v) Is closed by payment of $25,000 or the amount set by the insurer, whichever is less; (c) All claim files will be the joint property of the insurer and managing general agent. However, upon an order of liquidation of the insurer such files shall become the sole property of the insurer or its estate, but the managing general agent shall have reasonable access to and the right to copy the files on a timely basis; (d) 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 the dispute regarding the cause of termination. Nothing in this paragraph is intended to relieve the managing general agent or insurer or any other contractual obligation; and (e) Article III contains other provisions relating to the settlement of claims by the managing general agent on behalf of the insurer. (9) Electronic claims files (are/are not) in existence. If such files are in existence, Article III of this managing general agent’s contract will contain provisions which govern the timely transmission of the data by the managing general agent to the insurer. (10) This contract (does/does not) provide for a sharing of interim profits by the managing general agent. If this contract does provide for such sharing, then; (a) Provisions for such sharing are described in Article III of this managing general agent’s contract; and (b) If the managing general agent has the authority to determine the amount of the interim profits by establishing loss reserves or controlling claim payments, or in any other manner, interim profits will not be paid to the managing general agent until one year after they are earned for property insurance business and five years after they are earned on the casualty business and not until the profits have been verified rendered pursuant to the Arkansas Managing General Agents Act. contract of paid services (11service contract) The managing general agent shall not: (a) Bind reinsurance or retrocessions on behalf be stipulated in Annex 3 of this Contract, which may be amended upon mutual agreement of the insurerParties. Tariffs of the services rendered according to the contract of paid services (service contract) shall be specified in the Annex 4 of the Contract, which may be amended accordingly depending on changes of tariffs for electricity, water or gas and other tariffs. In case of changes of tariffs, the Seller shall inform the Buyer about together with the Attendant, and provide the Buyer the amended Annex 4. The managing general agent however (may/may not) bind facultative reinsurance contracts pursuant Buyer shall have no right to obligatory facultative agreements. If demand the managing general agent is permitted to bind facultative reinsurance contracts, this managing general agent’s contract will contain in Article III reinsurance underwriting guidelines, including, for both reinsurance assumed and ceded, a list of reinsurers with whom such automatic agreement are in effect, Seller altering the coverages and amounts inner walls or percentages that may be reinsured and commission schedules; (b) Commit the insurer to participate in insurance or reinsurance syndicates; (c) Appoint any agent without assuring that the agent is lawfully licensed to transact the type of insurance for which he is appointed or for which appointment is requested; (d) Without prior approval plan of the insurer, pay or commit apartment after the insurer to pay a claim over a specified amount, net of reinsurance, which plan has been submitted and agreed with the Buyer. The relations between the Parties under this contract shall not exceed one percent cease upon full performance of the insurer’s policyholder’s surplus as of December 31 of terms and settlements under the last completed calendar year; (e) Collect any payment from a reinsurer, or commit the insurer to any claim settlement with a reinsurer, without prior approval of the insurerContract. If prior approval is give, a report must The Parties shall be promptly forwarded entitled to the insurer; (f) Permit its subagent to serve on same rights and assume same responsibilities as should be stipulated by the insurer’s board of directors; (g) Jointly employ an individual who is employed with the insurer; or (h) Appoint a managing general subagentmain contract.

Mandatory Provisions. Notwithstanding Not withstanding any provision in this managing general agent’s 's contract or any other written, oral or parol agreement to the contrary, the following provisions are binding upon the insurer and the managing general agent: (1) The insurer may terminate the contract for cause upon written notice to the managing general agent. The insurer may suspend the underwriting authority of the managing general agent during the pendency of any dispute regarding the cause for termination. Nothing in this section is intended to relieve the managing general agent or insurer of any other contractual obligation; (2) The managing general agent will render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis; (3) All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity in a segregated account in a bank which is a member of the Federal Reserve System. This account shall be used for all payments on behalf of the insurer and for no other purpose. The managing general agent may retain no more than three (3) months, ' estimated claims claim payments and allocated loss adjustment expenses; (4) Separate records of business written by the managing general agent shall be maintained. The insurer shall have access and right to copy all accounts and records related to its business in a form usable by the insurer, insurer and the Insurance Commissioner director or insurance of the State state of Arkansas Missouri shall have access to all books, bank accounts and records of the managing general agent in a form usable to the Commissionerdirector. Such records shall be retained for a minimum of five (5) three years following the transactions to which the records relate. The insurer shall periodically, and not less often than semiannually, have access to conduct an on-site review of the underwriting and claims processing operations of the managing general agent; (5) This contract may not be assigned in whole or in part by the managing general agent;. (6) Appropriate underwriting guidelines are established in Article III of this managing general agent’s 's agreement;; -------------------------------------------------------------------------------- MO 375-0038(8/91) -------------------------------------------------------------------------------- (7) The insurer shall retain the right to cancel or not renew any policy of insurance subject to the applicable laws and regulations concerning the cancellation and nonrenewal of insurance policies; (8) This managing general agent’s 's contract (does/[X] does not) [ ] does not permit the managing general agent to settle claims on behalf of the insurer. If this managing general agent’s 's contract permits the managing general agent to settle claims on behalf of the insurer:. (a) All claims must be reported to the insurer in a timely manner;. (b) A copy of the claim file will be sent to the insurer at its request or as soon as it becomes known that the claim: (i) a. Has the potential to exceed $25,000 24,000 or exceeds the limit set by the insurer, ($ 50,000), whichever is less; (ii) b. Involves a coverage dispute; (iii) ; c. May exceed the managing general agent’s 's claims settlement authority; (iv) ; d. Is open for more than six (6) months; or (v) or e. Is closed by payment of $25,000 24,000 or the amount set by the insurer, whichever is less;. (c) All claim files will be the joint property of the insurer and managing general agent. However, upon an order of liquidation of the insurer such files shall become the sole property of the insurer or its estate, but the managing general agent shall have reasonable access to and the right to copy the files on a timely basis; (d) Any settlement authority granted to the managing general agent may be terminated for cause upon the insurer’s '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 the dispute regarding the cause of termination. Nothing in this paragraph is intended to relieve the managing general agent or insurer or any other contractual obligation; and. (e) Article III contains other provisions relating to the settlement of claims by the managing general agent on behalf of the insurer. (9) Electronic claims files (are/[ ] are not) [X] are not in existence. If such files are in existence, Article III of this managing general agent’s 's contract will contain provisions which govern the timely transmission of the data by the managing general agent to the insurer. (10) This contract (does/[ ] does not) [X] does not provide for a sharing of interim profits by the managing general agent. If this contract does provide for such sharing, then;: (a) Provisions provisions for such sharing are described in Article III of this managing general agent’s 's contract; and. (b) If the managing general agent has the authority to determine the amount of the interim profits by establishing loss reserves or controlling claim payments, or in any other manner, interim profits will not be paid to the managing general agent until one year after they are earned for property insurance business and five years after they are earned on the casualty business and not until the profits have been verified pursuant to the Arkansas Missouri Managing General Agents Act. (11) The managing general agent shall not: (a) Bind bind reinsurance or retrocessions on behalf of the insurer. The managing general agent however (may/however, [ ] may [X] may not) bind facultative reinsurance contracts pursuant to obligatory facultative agreements. If the managing general agent is permitted to bind facultative reinsurance contracts, this managing general agent’s 's contract will contain in Article III reinsurance underwriting guidelines, including, for both reinsurance assumed and ceded, a list of reinsurers with whom which such automatic agreement agreements are in effect, the coverages and amounts or percentages that may be reinsured and commission schedules;; -------------------------------------------------------------------------------- MO 375-0038 (8/91) (b) Commit the insurer to participate in insurance or reinsurance syndicates; (c) Appoint any agent producer without assuring that the agent producer is lawfully licensed to transact the type of insurance for which he is appointed or for which appointment is requestedappointed; (d) Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which shall not exceed one percent of the insurer’s 's policyholder’s 's surplus as of December 31 of the last completed immediately preceding calendar year;. (e) Collect any payment premium from a reinsurer, reinsurer or commit the insurer to any claim settlement with a reinsurer, ; without prior approval of the insurer. If prior approval is givegiven, a report must be promptly forwarded to the insurer; (f) Permit its subagent subproducer to serve on the insurer’s its board of directors; (g) Jointly employ an individual who is employed with the insurer; or (h) Appoint a subordinate managing general subagentagent.

Mandatory Provisions. Notwithstanding any provision in this the managing general agent’s 's contract or any other written, oral or parol parole agreement to the contrary, the following provisions are binding upon the insurer and the managing general agent: (1) The insurer may terminate the contract for cause upon written notice to the managing general agent. The insurer may suspend the underwriting authority of the managing general agent during the pendency of any dispute regarding the cause for termination. Nothing in this section is intended to relieve the managing general agent or insurer of any other contractual obligation; (2) The managing general agent will shall render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis; (3) All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity in a segregated account in a bank which that is a member of the Federal Reserve System. This account shall be used for all payments on behalf of the insurer and for no other purpose. The managing general agent may retain no more than three (3) months, months estimated claims payments and allocated loss adjustment expenses; (4) Separate records of business written by the managing general agent shall be maintained. The insurer shall have access and right to copy all accounts and records related to its business in a form usable by the insurer, insurer and the Insurance Alabama Commissioner of the State of Arkansas Insurance shall have access to all books, bank accounts accounts, and records of the managing general agent in a form usable to the Commissionercommissioner. Such records shall be retained for a minimum of five (5) three years following the transactions to which the records relate. The insurer shall periodically, and not less often than semiannually, have access to conduct an on-site review of the underwriting and claims processing operations of the managing general agent;. (5) This contract may not be assigned in whole or part by the managing general agent;. (6) Appropriate underwriting guidelines are established in Article III of this managing general agent’s 's agreement;. (7) The insurer shall retain have the right to cancel or not renew any policy of insurance subject to the applicable laws and regulations concerning the cancellation and nonrenewal non-renewal of insurance policies;. (8) This managing general agent’s contract (does/does not) permit the managing general agent to settle claims on behalf of the insurer. If this managing general agent’s 's contract permits the managing general agent to settle claims on behalf of the insurer: (a) a. All claims must shall be reported to the insurer company in a timely manner;. (b) b. A copy of the claim file will shall be sent to the insurer at its request or as soon as it becomes known to the managing general agent that the claim: (i) 1. Has the potential to exceed $25,000 10,000 or exceeds the limit set by the insurer, company ($ ), whichever is less; (ii) 2. Involves a coverage dispute; (iii) 3. May exceed the managing general agent’s 's claims settlement authority; (iv) Is 4. Has been open for more than six (6) months; or (v) 5. Is closed by payment of $25,000 10,000 or the an amount set by the insurercompany ($ ), whichever is less; (c) c. All claim files will be the joint property of the insurer and managing general agent. However, upon an order of liquidation of the insurer insurer, such files shall become the sole property of the insurer or its estate, but the managing general agent shall have reasonable access to and the right to copy the files on a timely basis; (d) d. Any settlement authority granted to the managing general agent may be terminated for cause upon the insurer’s 's written notice to the managing general agent or upon the termination of the this contract. The insurer may suspend the settlement authority during the pendency of the any dispute regarding the cause of for termination. Nothing in this paragraph is intended to relieve the managing general agent or insurer or of any other contractual obligation; and (e) e. Article III contains other provisions relating to the settlement of claims by the managing general agent on behalf of the insurer. (9) Electronic claims files (are/are not) in existence. If such files are in existence, Article III of this managing general agent’s 's contract will contain provisions which govern the timely transmission of the data by the managing general agent to the insurer. (10) This contract (does/does not) provide for a sharing of interim profits by the managing general agent. If this contract does provide for such sharing, then;: (a) a. Provisions for such sharing are described in Article III of this managing general agent’s 's contract; and (b) b. If the managing general agent has the authority to determine the amount of the interim profits by establishing loss reserves or controlling claim payments, or in any other manner, interim profits will not be paid to the managing general agent until one year after they are earned for property insurance business and five years after they are earned on the casualty business and not until the profits have been verified pursuant to the Arkansas Alabama Managing General Agents Act. (11) The managing general agent shall not: (a) a. Bind reinsurance or retrocessions on behalf of the insurer. The managing general agent however (however, may/may not) bind facultative reinsurance contracts pursuant to obligatory facultative agreements. If the managing general agent is permitted to bind facultative reinsurance contracts, this managing general agent’s 's contract will contain in Article III reinsurance underwriting guidelines, including, for both reinsurance assumed and ceded, a list of reinsurers with whom which such automatic agreement agreements are in effect, the coverages and amounts or percentages that may be reinsured and commission schedules; (b) b. Commit the insurer to participate in insurance or reinsurance syndicates; (c) c. Appoint any agent without assuring that the agent is lawfully licensed to transact the type of insurance for which he or she is appointed or for which appointment is requestedappointed; (d) d. Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which shall not exceed one percent of the insurer’s 's policyholder’s 's surplus as of December 31 of the last completed calendar year; (e) e. Collect any payment from a reinsurer, reinsurer or commit the insurer to any claim settlement with a reinsurer, reinsurer without prior approval of the insurer. If prior approval is givegiven, a report must shall be promptly forwarded to the insurer; (f) f. Permit its subagent to serve on the insurer’s 's board of directors; (g) g. Jointly employ an individual who is employed with by the insurer; or (h) h. Appoint a subordinate managing general subagentagent.

Mandatory Provisions. Notwithstanding any provision in this managing general agent’s contract or any other written, oral or parol agreement to the contrary, the following provisions are binding upon the insurer and the managing general agent: (1) The insurer may terminate the contract for cause upon written notice to the managing general agent. The insurer may suspend the underwriting authority of the managing general agent during the pendency of any dispute regarding the cause for termination. Nothing in this section is intended to relieve the managing general agent or insurer of any other contractual obligation; (2) The managing general agent will render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis; (3) All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity in a segregated account in a bank which is a member of the Federal Reserve System. This account shall be used for all payments on behalf of the insurer and for no other purpose. The managing general agent may retain no more than three (3) months, estimated claims payments and allocated loss adjustment expenses; (4) Separate records of business written by the managing general agent shall be maintained. The insurer shall have access and right to copy all accounts and records related to its business in a form usable by the insurer, and the Insurance Commissioner of the State of Arkansas shall have access to all books, bank accounts and records of the managing general agent in a form usable to the Commissioner. Such records shall be retained for a minimum of five (5) years following the transactions to which the records relate. The insurer shall periodically, and not less often than semiannually, have access to conduct an on-site review of the underwriting and claims processing operations of the managing general agent; (5) This contract may not be assigned in whole or part by the managing general agent; (6) Appropriate underwriting guidelines are established in Article III of this managing general agent’s agreement; (7) The insurer shall retain the right to cancel or not renew any policy of insurance subject to the applicable laws and regulations concerning the cancellation and nonrenewal of insurance policies; (8) This managing general agent’s contract (does/does not) permit the managing general agent to settle claims on behalf of the insurer. If this managing general agent’s contract permits the managing general agent to settle claims on behalf of the insurer: (a) All claims must be reported to the insurer in a timely manner; (b) A copy of the claim file will be sent to the insurer at its request or as soon as it becomes known that the claim: (i) Has the potential to exceed $25,000 or exceeds the limit set by the insurer, ($ $_ ), whichever is less; (ii) Involves a coverage dispute; (iii) May exceed the managing general agent’s claims settlement authority; ; (iv) Is open for more than six (6) months; or (v) Is closed by payment of $25,000 or the amount set by the insurer, whichever is less; (c) All claim files will be the joint property of the insurer and managing general agent. However, upon an order of liquidation of the insurer such files shall become the sole property of the insurer or its estate, but the managing general agent shall have reasonable access to and the right to copy the files on a timely basis; (d) 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 the dispute regarding the cause of termination. Nothing in this paragraph is intended to relieve the managing general agent or insurer or any other contractual obligation; and (e) Article III contains other provisions relating to the settlement of claims by the managing general agent on behalf of the insurer. (9) Electronic claims files (are/are not) in existence. If such files are in existence, Article III of this managing general agent’s contract will contain provisions which govern the timely transmission of the data by the managing general agent to the insurer. (10) This contract (does/does not) provide for a sharing of interim profits by the managing general agent. If this contract does provide for such sharing, then; (a) Provisions for such sharing are described in Article III of this managing general agent’s contract; and (b) If the managing general agent has the authority to determine the amount of the interim profits by establishing loss reserves or controlling claim payments, or in any other manner, interim profits will not be paid to the managing general agent until one year after they are earned for property insurance business and five years after they are earned on the casualty business and not until the profits have been verified pursuant to the Arkansas Managing General Agents Act. (11) The managing general agent shall not: (a) Bind reinsurance or retrocessions on behalf of the insurer. The managing general agent however (may/may not) bind facultative reinsurance contracts pursuant to obligatory facultative agreements. If the managing general agent is permitted to bind facultative reinsurance contracts, this managing general agent’s contract will contain in Article III reinsurance underwriting guidelines, including, for both reinsurance assumed and ceded, a list of reinsurers with whom such automatic agreement are in effect, the coverages and amounts or percentages that may be reinsured and commission schedules; (b) Commit the insurer to participate in insurance or reinsurance syndicates; (c) Appoint any agent without assuring that the agent is lawfully licensed to transact the type of insurance for which he is appointed or for which appointment is requested; (d) Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which shall not exceed one percent of the insurer’s policyholder’s surplus as of December 31 of the last completed calendar year; (e) Collect any payment from a reinsurer, or commit the insurer to any claim settlement with a reinsurer, without prior approval of the insurer. If prior approval is give, a report must be promptly forwarded to the insurer; (f) Permit its subagent to serve on the insurer’s board of directors; (g) Jointly employ an individual who is employed with the insurer; or (h) Appoint a managing general subagent.