(a)    A managing general agent may not:

(1)    commit the insurer to participate in insurance or reinsurance syndicates;

(2)    appoint or hire an insurance producer to solicit, procure, or negotiate insurance contracts for the insurer without ensuring that the insurance producer is licensed under Title 10, Subtitle 1 of this article;

(3)    take an action that would violate § 27-503 of this article if taken directly by the insurer;

(4)    without the insurer’s written approval, pay or commit the insurer to pay a claim, net of reinsurance, that exceeds 1% of the insurer’s policyholder surplus as of December 31 of the immediately preceding calendar year;

(5)    without the insurer’s prior written approval, collect any payment from a reinsurer;

(6)    commit the insurer to a claim settlement with a reinsurer;

(7)    employ an individual who also is employed by the insurer;

(8)    allow an agent or employee of the managing general agent to serve on the insurer’s board of directors; or

(9)    appoint a submanaging general agent unless:

(i)    approval of the appointment is obtained from the Commissioner and from the insurer for whom the managing general agent acts; and

(ii)    the submanaging general agent complies with any requirements imposed by the Commissioner under § 8-213 of this subtitle.

(b)    (1)    Except as provided in paragraph (2) of this subsection, a managing general agent may not bind reinsurance or retrocessions for an insurer.

(2)    A managing general agent may bind facultative reinsurance contracts under obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines for reinsurance both assumed and ceded, including:

(i)    a list of reinsurers with which the automatic agreements are in effect;

(ii)    the coverages and amounts or percentages that may be reinsured; and

(iii)    commission schedules.