§ 23-62-401. Short title
This subchapter may be cited as the “Reinsurance Intermediary Act”.
§ 23-62-402. Definitions
As used in this subchapter: (1) “Actuary” means a person who is a member in good standing of the American Academy of Actuaries; (2) “Controlling person” means any person, firm, association, or corporation who directly or indirectly has the power to direct or cause to be directed the management, control, or activities of a reinsurance […]
§ 23-62-403. Qualified United States financial institutions
For purposes of this subchapter, a “qualified United States financial institution” means an institution that: (1) Is organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or any state thereof; (2) Is regulated, supervised, and examined by federal or state authorities […]
§ 23-62-404. Licensure
(a) No person, firm, association, or corporation shall act as a reinsurance intermediary broker in this state if the reinsurance intermediary broker maintains an office either directly, or as a member or employee of a firm or association, or as an officer, director, or employee of a corporation: (1) In this state, unless the reinsurance […]
§ 23-62-405. Required contract provisions — Reinsurance intermediary brokers
(a) Transactions between a reinsurance intermediary broker and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. (b) The authorization shall, at a minimum, provide that: (1) The insurer may terminate the reinsurance intermediary broker’s authority at any time; (2) The […]
§ 23-62-406. Books and records — Reinsurance intermediary brokers
(a) For at least ten (10) years after expiration of each contract of reinsurance transacted by the reinsurance intermediary broker, the reinsurance intermediary broker will keep a complete record for each transaction showing: (1) The type of contract, limits, underwriting restrictions, classes or risks, and territory; (2) The period of coverage, including effective and expiration […]
§ 23-62-407. Duties of insurers utilizing the services of a reinsurance intermediary broker
(a) An insurer shall not engage the services of any person, firm, association, or corporation to act as a reinsurance intermediary broker on its behalf unless the person is licensed as required by § 23-62-404. (b) An insurer may not employ an individual who is employed by a reinsurance intermediary broker with which it transacts […]
§ 23-62-408. Required contract provisions — Reinsurance intermediary managers
(a) Transactions between a reinsurance intermediary manager and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party, which shall be approved by the reinsurer’s board of directors. (b) At least thirty (30) days before the reinsurer assumes or cedes business through […]
§ 23-62-409. Prohibited acts
The reinsurance intermediary manager shall not: (1) (A) Bind retrocessions on behalf of the reinsurer, except that the reinsurance intermediary manager may bind facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. (B) The guidelines shall include a list of reinsurers with which the […]
§ 23-62-410. Duties of reinsurers utilizing the services of a reinsurance intermediary manager
(a) A reinsurer shall not engage the services of any person, firm, association, or corporation to act as a reinsurance intermediary manager on its behalf unless the person is licensed as required by § 23-62-404. (b) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary manager which […]
§ 23-62-411. Examination authority
(a) (1) A reinsurance intermediary shall be subject to examination by the Insurance Commissioner. (2) The commissioner shall have access to all books, bank accounts, and records of the reinsurance intermediary in a form usable to the commissioner. (b) A reinsurance intermediary manager may be examined as if it were the reinsurer.
§ 23-62-412. Penalties and liabilities
(a) A reinsurance intermediary, insurer, or reinsurer found by the Insurance Commissioner, after a hearing conducted in accordance with §§ 23-61-301 — 23-61-307, to be in violation of any provision of this subchapter shall: (1) For each separate violation, pay a penalty in an amount not exceeding five thousand dollars ($5,000); (2) Be subject to […]
§ 23-62-413. Rules
The Insurance Commissioner may adopt reasonable rules for the implementation and administration of the provisions of this subchapter.