31A-23a-806 - Prohibited acts. - Utah Statutes

31A-23a-806. Prohibited acts.
(1) The reinsurance intermediary-manager may not cede retrocessions on behalf of thereinsurer, except that the reinsurance intermediary-manager may cede facultative retrocessionspursuant to obligatory facultative agreements if the contract with the reinsurer containsreinsurance underwriting guidelines for facultative retrocessions. The guidelines shall include alist of reinsurers with which automatic agreements are in effect, and for each listed reinsurer, thecoverages and amounts or percentages that may be reinsured, and commission schedules.
(2) The reinsurance intermediary-manager may not commit the reinsurer to participate inreinsurance syndicates.
(3) The reinsurance intermediary-manager may not appoint any producer withoutassuring that the producer is lawfully licensed to transact the type of reinsurance for which he isappointed.
(4) The reinsurance intermediary-manager may not, without prior approval of thereinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesserof an amount specified by the reinsurer or 1% of the reinsurer's policyholder's surplus as ofDecember 31 of the last complete calendar year.
(5) The reinsurance intermediary-manager may not collect any payment from aretrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, withoutprior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded tothe reinsurer.
(6) The reinsurance intermediary-manager may not jointly employ an individual who isemployed by the reinsurer unless the reinsurance intermediary-manager is under common controlwith the reinsurer subject to Title 31A, Chapter 16, Insurance Holding Companies.
(7) The reinsurance intermediary-manager may not appoint a subreinsuranceintermediary-manager.

Renumbered and Amended by Chapter 298, 2003 General Session