§ 8-518
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/md/insurance/8-518A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§8–518.
(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.
(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.