NAC693A.680. Written contract specifying responsibilities of controlling broker and controlled insurer.

     1. A controlled insurer shall not accept insurance business from a controlling broker and a controlling broker shall not place insurance with a controlled insurer unless there is a written contract, which has been approved by the board of directors of the controlled insurer, between the controlling broker and the controlled insurer that specifies the responsibilities of each party.

     2. Such a contract must contain a provision that allows a controlled insurer, upon written notice to a controlling broker, to terminate the contract for cause. The controlled insurer shall not accept insurance business from the controlling broker during the pendency of any dispute regarding the cause for the termination of the contract.

     3. A controlling broker shall not assign, in whole or in part, a contract entered into pursuant to subsection 1.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)