2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 510 - MANAGING GENERAL AGENTS AND THIRD=PARTY ADMINISTRATORS
510.2 - CONTRACTS WITH MANAGING GENERAL AGENTS.

        510.2  CONTRACTS WITH MANAGING GENERAL AGENTS.
         A domestic insurer shall not enter into a contract with a managing
      general agent unless the domestic insurer notifies the commissioner
      in writing of its intention to enter into the contract at least
      thirty days prior to entering into the contract or within a shorter
      time permitted by the commissioner and the commissioner has not
      disapproved of the contracts within the time period.  The
      commissioner shall not approve the contracts if the commissioner
      finds any of the following:
         1.  The service or management charges in the contract are based
      upon criteria unrelated either to the insurer's profits or to the
      reasonable, customary, and usual charges for such services to the
      company.
         2.  Management personnel or other employees of the insurance
      company are to be performing management functions and receiving any
      remuneration for those management functions through the contract in
      addition to the compensation received directly from the insurance
      company for their services.
         3.  The contract would transfer substantial control of the insurer
      or any of the powers vested in the board of directors, by statute,
      articles of incorporation, or bylaws, or substantially all of the
      basic functions of the insurer's management to the managing general
      agent.
         4.  The contract contains provisions which would be clearly
      detrimental to the best interest of policyholders, stockholders, or
      members of the company.
         5.  The officers and directors of the managing general agent firm
      are of known bad character or have been affiliated, directly or
      indirectly, through ownership, control, management, reinsurance
      transactions, or other insurance or business relations with any
      person known to have been involved in the improper manipulation of
      assets, accounts, or reinsurance.
         If the commissioner disapproves of a contract, notice of the
      disapproval shall be given to the insurer, specifying the reasons in
      writing.  The commissioner shall grant any party to the contract a
      hearing on the disapproval upon request pursuant to chapter 17A.  

         89 Acts, ch 227, § 2
         Referred to in § 510.10
         Contracts; see also § 510.5