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§ 8-518. Restrictions relating to activities of reinsurance managers

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 8. Entities that Act as Insurers
Subtitle 5. Reinsurance Intermediaries (Refs & Annos)
MD Code, Insurance, § 8-518
§ 8-518. Restrictions relating to activities of reinsurance managers
In general
(a) A reinsurance manager:
(1) except as provided in subsection (b) of this section, may not cede retrocessions for a reinsurer;
(2) may not commit a reinsurer to participate in reinsurance syndicates;
(3) may not appoint or hire an insurance producer to solicit, procure, or negotiate reinsurance contracts for a reinsurer without ensuring that the insurance producer is qualified under Title 10, Subtitle 1 of this article;
(4) may not take an action that would constitute a violation of § 27-503 of this article if taken directly by a reinsurer;
(5) without the reinsurer's prior written approval, may not pay or commit a reinsurer to pay a claim, net of reinsurance, that exceeds the lesser of 1% of the reinsurer's policyholder surplus as of the preceding calendar year and an amount specified by the reinsurer;
(6) subject to subsection (b) of this section and without the reinsurer's prior written approval:
(i) may not collect a payment from a retrocessionaire; or
(ii) may not commit a reinsurer to a claim settlement with a retrocessionaire;
(7) may not appoint a subreinsurance manager; or
(8) may not employ an individual who is also employed by a reinsurer that transacts business with the reinsurance manager, unless the reinsurance manager is under common control with the reinsurer and is subject to Title 7 of this article.
Reinsurance guidelines for retrocessions
(b) A reinsurance manager may cede facultative reinsurance contracts under obligatory facultative agreements if the contract between the reinsurance manager and reinsurer contains reinsurance underwriting guidelines for the retrocessions, including:
(1) a list of reinsurers with which any automatic agreements are in effect;
(2) the coverages and amounts or percentages that may be reinsured; and
(3) commission schedules.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 70, § 1, eff. Oct. 1, 1997; Acts 2001, c. 731, §§ 1, 9, eff. July 2, 2001; Acts 2002, c. 19, § 5, eff. April 9, 2002.
Formerly Art. 48A, § 731.
MD Code, Insurance, § 8-518, MD INSURANCE § 8-518
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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