{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1361.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1361.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1361.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1361.html"}],"law_id":57894,"edition_id":1,"section_id":57894,"structure_id":13457,"section_number":"38.2-1361","catch_line":"Duties of insurers utilizing managing general agents","history":"2001, c. 706.","full_text":"A\n\nThe insurer shall annually obtain a copy of the current financial statement, which shall be certified by an independent public accountant and in a form acceptable to the Commission, of each managing general agent with which it transacts business.B\n\nIf the managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent. This is in addition to any other required loss reserve certification.C\n\nThe insurer shall conduct, at least semiannually, an on-site review of the underwriting and claims processing operations of the managing general agent.D\n\nBinding authority for participation in insurance syndicates or reinsurance syndicates shall rest with an officer of the insurer, who shall not be affiliated with the managing general agent.E\n\nAt least annually and more frequently if requested by the Commission, the insurer shall report to the Commission, in a form acceptable to the Commission, concerning its transactions with a managing general agent. The report shall identify the managing general agent through which the insurer has transacted business, and for each managing general agent shall report the nature of the contract, the types of authority granted, the types of business written, the amount of premium written, and any other information the Commission may request.F\n\nAn insurer shall review its books and records each quarter to determine if any agent as defined by § 38.2-1800 has become a managing general agent as defined in § 38.2-1358. If the insurer determines that an agent has become a managing general agent pursuant to the above, the insurer shall promptly notify the agent and the Commission of such determination, and the insurer and agent must fully comply with the provisions of this article within thirty calendar days.G\n\nAn insurer shall not appoint to its board of directors an officer, director, employee, agent or controlling shareholder of its managing general agent. This subsection shall not apply to relationships governed by Article 5 (§ 38.2-1322 et seq.) of this chapter or Article 2 (§ 38.2-4230 et seq.) of Chapter 42 of this title.H\n\nThe insurer shall not delegate to any person, other than one of its officers, the authority to enter into or bind any reinsurance agreement by which the insurer agrees to cede any risk to a reinsurer, except that an insurer may delegate the specific authority to bind facultative reinsurance contracts by placing individual risks pursuant to the provisions of subdivision 1 of § 38.2-1353 or subdivision 10 of § 38.2-1360. The officer shall be a regular salaried employee of the insurer and shall not be affiliated with the managing general agent. The insurer is not prohibited by the provisions of this subsection from delegating to its managing general agent the authority to enter into or bind an agreement to assume a risk provided the managing general agent is licensed to act as a reinsurance intermediary manager under the provisions of Article 8 (§ 38.2-1347 et seq.) of this chapter and the authority to both cede and assume a given risk is not simultaneously vested in the same intermediary.","order_by":null,"text":{"0":{"id":212087,"text":"The insurer shall annually obtain a copy of the current financial statement, which shall be certified by an independent public accountant and in a form acceptable to the Commission, of each managing general agent with which it transacts business.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":212088,"text":"If the managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent. This is in addition to any other required loss reserve certification.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":212089,"text":"The insurer shall conduct, at least semiannually, an on-site review of the underwriting and claims processing operations of the managing general agent.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":212090,"text":"Binding authority for participation in insurance syndicates or reinsurance syndicates shall rest with an officer of the insurer, who shall not be affiliated with the managing general agent.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":212091,"text":"At least annually and more frequently if requested by the Commission, the insurer shall report to the Commission, in a form acceptable to the Commission, concerning its transactions with a managing general agent. The report shall identify the managing general agent through which the insurer has transacted business, and for each managing general agent shall report the nature of the contract, the types of authority granted, the types of business written, the amount of premium written, and any other information the Commission may request.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":212092,"text":"An insurer shall review its books and records each quarter to determine if any agent as defined by § 38.2-1800 has become a managing general agent as defined in § 38.2-1358. If the insurer determines that an agent has become a managing general agent pursuant to the above, the insurer shall promptly notify the agent and the Commission of such determination, and the insurer and agent must fully comply with the provisions of this article within thirty calendar days.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":212093,"text":"An insurer shall not appoint to its board of directors an officer, director, employee, agent or controlling shareholder of its managing general agent. This subsection shall not apply to relationships governed by Article 5 (§ 38.2-1322 et seq.) of this chapter or Article 2 (§ 38.2-4230 et seq.) of Chapter 42 of this title.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":212094,"text":"The insurer shall not delegate to any person, other than one of its officers, the authority to enter into or bind any reinsurance agreement by which the insurer agrees to cede any risk to a reinsurer, except that an insurer may delegate the specific authority to bind facultative reinsurance contracts by placing individual risks pursuant to the provisions of subdivision 1 of § 38.2-1353 or subdivision 10 of § 38.2-1360. The officer shall be a regular salaried employee of the insurer and shall not be affiliated with the managing general agent. The insurer is not prohibited by the provisions of this subsection from delegating to its managing general agent the authority to enter into or bind an agreement to assume a risk provided the managing general agent is licensed to act as a reinsurance intermediary manager under the provisions of Article 8 (§ 38.2-1347 et seq.) of this chapter and the authority to both cede and assume a given risk is not simultaneously vested in the same intermediary.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G"}},"ancestry":[{"id":13457,"edition_id":1,"name":"Licensing of Managing General Agents","identifier":"9","label":"article","depth":3,"order_by":1,"parent_id":13289,"metadata":{},"date_created":"2026-06-26 03:44:55","date_modified":"2026-06-26 03:44:55","permalink":{"id":211857,"object_type":"structure","relational_id":13457,"identifier":"9","token":"38.2\/13\/9","url":"\/38.2\/13\/9\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13289,"edition_id":1,"name":"Reports, Reserves and Examinations, Insurance Holding Companies, Reinsurance Intermediaries, and Managing General Agents","identifier":"13","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":211347,"object_type":"structure","relational_id":13289,"identifier":"13","token":"38.2\/13","url":"\/38.2\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":82605,"structure_id":13457,"section_number":"38.2-1358","catch_line":"Definitions","url":"\/38.2-1358\/","token":"38.2\/13\/9\/38.2-1358","metadata":false},{"id":84337,"structure_id":13457,"section_number":"38.2-1359","catch_line":"Licensure","url":"\/38.2-1359\/","token":"38.2\/13\/9\/38.2-1359","metadata":false},{"id":66843,"structure_id":13457,"section_number":"38.2-1360","catch_line":"Required contract provisions","url":"\/38.2-1360\/","token":"38.2\/13\/9\/38.2-1360","metadata":false},{"id":57894,"structure_id":13457,"section_number":"38.2-1361","catch_line":"Duties of insurers utilizing managing general agents","url":"\/38.2-1361\/","token":"38.2\/13\/9\/38.2-1361","metadata":false},{"id":54417,"structure_id":13457,"section_number":"38.2-1362","catch_line":"Examination authority","url":"\/38.2-1362\/","token":"38.2\/13\/9\/38.2-1362","metadata":false},{"id":83354,"structure_id":13457,"section_number":"38.2-1363","catch_line":"Penalties and liabilities; grounds for placing on probation, refusal to issue or renew, revocation, or suspension of license","url":"\/38.2-1363\/","token":"38.2\/13\/9\/38.2-1363","metadata":false},{"id":69749,"structure_id":13457,"section_number":"38.2-1364","catch_line":"Requirement to report to Commission","url":"\/38.2-1364\/","token":"38.2\/13\/9\/38.2-1364","metadata":false}],"previous_section":{"id":66843,"structure_id":13457,"section_number":"38.2-1360","catch_line":"Required contract provisions","url":"\/38.2-1360\/","token":"38.2\/13\/9\/38.2-1360","metadata":false},"next_section":{"id":54417,"structure_id":13457,"section_number":"38.2-1362","catch_line":"Examination authority","url":"\/38.2-1362\/","token":"38.2\/13\/9\/38.2-1362","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1361\/","history_text":"

This law was first created in 2001. The record of its establishment is cataloged in chapter 706<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":66843,"section_number":"38.2-1360","catch_line":"Required contract provisions","order_by":null,"url":"\/38.2-1360\/"}],"refers_to":[{"id":66587,"section_number":"38.2-1322","catch_line":"Definitions","order_by":null,"url":"\/38.2-1322\/"},{"id":58348,"section_number":"38.2-1347","catch_line":"Definitions","order_by":null,"url":"\/38.2-1347\/"},{"id":82758,"section_number":"38.2-1353","catch_line":"Prohibited acts","order_by":null,"url":"\/38.2-1353\/"},{"id":82605,"section_number":"38.2-1358","catch_line":"Definitions","order_by":null,"url":"\/38.2-1358\/"},{"id":66843,"section_number":"38.2-1360","catch_line":"Required contract provisions","order_by":null,"url":"\/38.2-1360\/"},{"id":67482,"section_number":"38.2-1800","catch_line":"Definitions","order_by":null,"url":"\/38.2-1800\/"},{"id":57275,"section_number":"38.2-4230","catch_line":"Definitions","order_by":null,"url":"\/38.2-4230\/"}],"permalink":{"id":211871,"object_type":"law","relational_id":57894,"identifier":"38.2-1361","token":"38.2\/13\/9\/38.2-1361","url":"\/38.2-1361\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1361\/","token":"38.2\/13\/9\/38.2-1361","dublin_core":{"Title":"Duties of insurers utilizing managing general agents","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1361","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The insurer<\/span> shall annually obtain a copy of the current financial statement, which shall be certified by an independent public accountant and in a form acceptable to the Commission<\/span>, of each managing general agent<\/span> with which it transacts business. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If the managing general agent<\/span> establishes loss reserves, the insurer<\/span> shall annually obtain the opinion<\/span> of an actuary<\/span> attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent<\/span>. This is in addition to any other required loss reserve certification. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The insurer<\/span> shall conduct, at least semiannually, an on-site review of the underwriting and claims processing operations of the managing general agent<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Binding authority for participation in insurance<\/span> syndicates or reinsurance syndicates shall rest with an officer of the insurer<\/span>, who shall not be affiliated with the managing general agent<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> At least annually and more frequently if requested by the Commission<\/span>, the insurer<\/span> shall report to the Commission<\/span>, in a form acceptable to the Commission<\/span>, concerning its transactions with a managing general agent<\/span>. The report shall identify the managing general agent<\/span> through which the insurer<\/span> has transacted business, and for each managing general agent<\/span> shall report the nature of the contract<\/span>, the types of authority granted, the types of business written, the amount of premium written, and any other information the Commission<\/span> may request. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> An insurer<\/span> shall review its books and records each quarter to determine if any agent as defined by § 38.2-1800<\/a> has become a managing general agent<\/span> as defined in § 38.2-1358<\/a>. If the insurer<\/span> determines that an agent has become a managing general agent<\/span> pursuant to the above, the insurer<\/span> shall promptly notify the agent and the Commission<\/span> of such determination, and the insurer<\/span> and agent must fully comply with the provisions of this article within thirty calendar days. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> An insurer<\/span> shall not appoint to its board of directors an officer, director, employee, agent or controlling shareholder of its managing general agent<\/span>. This subsection shall not apply to relationships governed by Article 5 (§ 38.2-1322<\/a> et seq.) of this chapter or Article 2 (§ 38.2-4230<\/a> et seq.) of Chapter 42 of this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> The insurer<\/span> shall not delegate to any person<\/span>, other than one of its officers, the authority to enter into or bind any reinsurance agreement by which the insurer<\/span> agrees to cede any risk to a reinsurer, except that an insurer<\/span> may delegate the specific authority to bind facultative reinsurance contracts<\/span> by placing individual risks pursuant to the provisions of subdivision 1 of § 38.2-1353<\/a> or subdivision 10 of § 38.2-1360<\/a>. The officer shall be a regular salaried employee of the insurer<\/span> and shall not be affiliated with the managing general agent<\/span>. The insurer<\/span> is not prohibited by the provisions of this subsection from delegating to its managing general agent<\/span> the authority to enter into or bind an agreement to assume a risk provided the managing general agent<\/span> is licensed to act as a reinsurance intermediary manager under the provisions of Article 8 (§ 38.2-1347<\/a> et seq.) of this chapter and the authority to both cede and assume a given risk is not simultaneously vested in the same intermediary. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDUTIES OF INSURERS UTILIZING MANAGING GENERAL AGENTS (\u00a7 38.2-1361)\n\nA. The insurer shall annually obtain a copy of the current financial statement,\nwhich shall be certified by an independent public accountant and in a form\nacceptable to the Commission, of each managing general agent with which it\ntransacts business.\n\nB. If the managing general agent establishes loss reserves, the insurer shall\nannually obtain the opinion of an actuary attesting to the adequacy of loss\nreserves established for losses incurred and outstanding on business produced by\nthe managing general agent. This is in addition to any other required loss\nreserve certification.\n\nC. The insurer shall conduct, at least semiannually, an on-site review of the\nunderwriting and claims processing operations of the managing general agent.\n\nD. Binding authority for participation in insurance syndicates or reinsurance\nsyndicates shall rest with an officer of the insurer, who shall not be\naffiliated with the managing general agent.\n\nE. At least annually and more frequently if requested by the Commission, the\ninsurer shall report to the Commission, in a form acceptable to the Commission,\nconcerning its transactions with a managing general agent. The report shall\nidentify the managing general agent through which the insurer has transacted\nbusiness, and for each managing general agent shall report the nature of the\ncontract, the types of authority granted, the types of business written, the\namount of premium written, and any other information the Commission may request.\n\nF. An insurer shall review its books and records each quarter to determine if\nany agent as defined by § 38.2-1800 has become a managing general agent as\ndefined in § 38.2-1358. If the insurer determines that an agent has become\na managing general agent pursuant to the above, the insurer shall promptly\nnotify the agent and the Commission of such determination, and the insurer and\nagent must fully comply with the provisions of this article within thirty\ncalendar days.\n\nG. An insurer shall not appoint to its board of directors an officer, director,\nemployee, agent or controlling shareholder of its managing general agent. This\nsubsection shall not apply to relationships governed by Article 5 (§\n38.2-1322 et seq.) of this chapter or Article 2 (§ 38.2-4230 et seq.) of\nChapter 42 of this title.\n\nH. The insurer shall not delegate to any person, other than one of its officers,\nthe authority to enter into or bind any reinsurance agreement by which the\ninsurer agrees to cede any risk to a reinsurer, except that an insurer may\ndelegate the specific authority to bind facultative reinsurance contracts by\nplacing individual risks pursuant to the provisions of subdivision 1 of §\n38.2-1353 or subdivision 10 of § 38.2-1360. The officer shall be a regular\nsalaried employee of the insurer and shall not be affiliated with the managing\ngeneral agent. The insurer is not prohibited by the provisions of this\nsubsection from delegating to its managing general agent the authority to enter\ninto or bind an agreement to assume a risk provided the managing general agent\nis licensed to act as a reinsurance intermediary manager under the provisions of\nArticle 8 (§ 38.2-1347 et seq.) of this chapter and the authority to both\ncede and assume a given risk is not simultaneously vested in the same\nintermediary.\n\nHISTORY: 2001, c. 706.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}