40-4508. Same; reinsurance managers precluded from taking certain actions. - Kansas Statutes

40-4508

Chapter 40.--INSURANCE Article 45.--REGULATION OF REINSURANCE INTERMEDIARIES

      40-4508.   Same; reinsurance managers precluded from taking certainactions.The reinsurance manager shall not:

      (a)   Cede retrocessions on behalf of the reinsurer, except that thereinsurance manager may cede faculative retrocessions pursuant to obligatoryfaculative agreements if the contract with the reinsurer contains reinsuranceunderwriting guidelines for such retrocessions. Such guidelines shall includea list of reinsurers with which such automatic agreements are in effect, andfor each such reinsurer, the coverages and amounts or percentages that may bereinsured, andcommission schedules;

      (b)   commit the reinsurer to participate in reinsurance syndicates;

      (c)   appoint any producer without assuring that the producer is lawfullylicensed to transact the type of reinsurance for which such producer isappointed;

      (d)   without prior approval of the reinsurer, pay or commit the reinsurer topay a claim, net of retrocessions, that exceeds the lesser of an amountspecified by the reinsurer or one percent of the reinsurer's policyholder'ssurplus as of December 31 of the last complete calendar year;

      (e)   collect any payment from a retrocessionaire or commit the reinsurer toany claim settlement with a retrocessionaire, without prior approval of thereinsurer. If prior approval is given, a report must be promptly forwarded tothe reinsurer;

      (f)   jointly employ an individual who is employed by the reinsurer unlesssuch reinsurance manager is under common control with the reinsurer subject tothe holding company act;

      (g)   appoint a sub-reinsurance manager.

      History:   L. 1992, ch. 15, § 8; Dec. 31.