375.1127. Reinsurance manager, prohibited acts. - Missouri Statutes

Reinsurance manager, prohibited acts.

375.1127. The RM shall not:

(1) Bind retrocessions on behalf of the reinsurer, exceptthat the RM may bind facultative retrocessions pursuant toobligatory facultative agreements if the contract with thereinsurer contains reinsurance underwriting guidelines for suchretrocessions. Such guidelines shall include a list ofreinsurers with which such automatic agreements are in effect,and for each such reinsurer, the coverages and amounts orpercentages that may be reinsured, and commission schedules;

(2) Commit the reinsurer to participate in reinsurancesyndicates;

(3) Appoint any producer without assuring that the produceris lawfully licensed to transact the type of reinsurance forwhich he is appointed;

(4) Without prior approval of the reinsurer, pay or committhe reinsurer to pay a claim, net of retrocessions, that exceedsthe lesser of an amount specified by the reinsurer or one percentof the reinsurer's policyholder's surplus as of Decemberthirty-first of the last complete calendar year;

(5) Collect any payment from a retrocessionaire or committhe reinsurer to any claim settlement with a retrocessionaire,without prior approval of the reinsurer. If prior approval isgiven, a report must be promptly forwarded to the reinsurer;

(6) Jointly employ an individual who is employed by thereinsurer; or

(7) Appoint a subRM.

(L. 1991 H.B. 385, et al. § 44)

Effective 7-1-92