31A-23a-806. Prohibited acts.
(1) The reinsurance intermediary-manager may not cede retrocessions on behalf of the
reinsurer, except that the reinsurance intermediary-manager may cede facultative retrocessions
pursuant to obligatory facultative agreements if the contract with the reinsurer contains
reinsurance underwriting guidelines for facultative retrocessions. The guidelines shall include a
list of reinsurers with which automatic agreements are in effect, and for each listed reinsurer, the
coverages and amounts or percentages that may be reinsured, and commission schedules.
(2) The reinsurance intermediary-manager may not commit the reinsurer to participate in
reinsurance syndicates.
(3) The reinsurance intermediary-manager may not appoint any producer without
assuring that the producer is lawfully licensed to transact the type of reinsurance for which he is
appointed.
(4) The reinsurance intermediary-manager may not, without prior approval of the
reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser
of an amount specified by the reinsurer or 1% of the reinsurer's policyholder's surplus as of
December 31 of the last complete calendar year.
(5) The reinsurance intermediary-manager may not collect any payment from a
retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without
prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to
the reinsurer.
(6) The reinsurance intermediary-manager may not jointly employ an individual who is
employed by the reinsurer unless the reinsurance intermediary-manager is under common control
with the reinsurer subject to Title 31A, Chapter 16, Insurance Holding Companies.
(7) The reinsurance intermediary-manager may not appoint a subreinsurance
intermediary-manager.
Renumbered and Amended by Chapter 298, 2003 General Session
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Last revised: Thursday, May 28, 2009