38.2-1353 - Prohibited acts. - Virginia Statutes

§ 38.2-1353. Prohibited acts.

No insurer shall authorize its reinsurance intermediary manager to, and noreinsurance intermediary manager shall:

1. Cede retrocessions on behalf of the reinsurer, except that the reinsuranceintermediary manager may cede facultative retrocessions pursuant toobligatory facultative agreements if the contract between the reinsuranceintermediary manager and the reinsurer contains reinsurance underwritingguidelines for such retrocessions. Such guidelines shall include a list ofreinsurers with which such automatic agreements are in effect, and for eachsuch reinsurer, the coverages and amounts or percentages that may bereinsured, and commission schedules.

2. Commit the reinsurer to participate in reinsurance syndicates.

3. Permit any agent or reinsurance intermediary to represent the reinsurerwithout assuring that the agent or reinsurance intermediary is lawfullylicensed.

4. 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 surplus topolicyholders as of December 31 of the last completed calendar year.

5. Collect any payment from a retrocessionaire or commit the reinsurer to anyclaim settlement with a retrocessionaire without prior approval of thereinsurer. If prior approval is given, a report must be promptly forwarded tothe reinsurer.

6. Jointly employ an individual who is employed by the reinsurer unless suchreinsurance manager is under common control with the reinsurer subject toArticle 5 (§ 38.2-1322 et seq.) of this chapter or Article 2 (§ 38.2-4230 etseq.) of Chapter 42 of this title.

7. Appoint a sub-reinsurance intermediary manager.

(2001, c. 706.)