[ARTICLE
9B]



REINSURANCE
INTERMEDIARY



 



Cross References



 



  Credit for reinsurance, see article 4A.



 



Law Journals and Reviews



 



  Reinsurance Intermediaries:  Law and Litigation.  29 UH L.
Rev. 59.



 



§431:9B-101  Definitions.  For purposes
of this article:



"Actuary" means a person who is a
member in good standing of the American Academy of Actuaries.



"Controlling person" means any
individual, firm, association, or corporation that directly or indirectly has
the power to direct or cause to be directed, the management, control, or
activities of the reinsurance intermediary.



"Insurer" means any individual, firm,
association, or corporation duly licensed in this State pursuant to this
chapter as an insurer.



"Licensed producer" or
"producer" means a producer or reinsurance intermediary licensed
pursuant to this chapter.



"Qualified United States financial
institution" means an institution that:



(1)  Is organized or (in the case of a United States office of a foreign banking organization) licensed, under the laws of the United States or any state thereof;



(2)  Is regulated, supervised, and examined by United
States federal or state authorities having regulatory authority over banks and
trust companies; and



(3)  Has been determined by either the commissioner,
or the securities valuation office of the National Association of Insurance
Commissioners, to meet such standards of financial condition and standing as
are considered necessary and appropriate to regulate the quality of financial
institutions whose letters of credit will be acceptable to the commissioner.



"Reinsurance intermediary" means a
reinsurance intermediary- broker or a reinsurance intermediary-manager as these
terms are defined in this section.



"Reinsurance intermediary-broker" or
"RB" means any person, other than an officer or employee of the
ceding insurer, firm, association, or corporation that solicits, negotiates, or
places reinsurance cessions or retrocessions on behalf of a ceding insurer
without the authority or power to bind reinsurance on behalf of the insurer.



"Reinsurance intermediary-manager" or
"RM" means any individual, firm, association, or corporation that has
authority to bind or manages all or part of the assumed reinsurance business of
a reinsurer (including the management of a separate division, department, or
underwriting office) and acts as an agent for the reinsurer whether known as a
reinsurance intermediary-manager, manager, or other similar term. 
Notwithstanding the above, the following persons shall not be considered a reinsurance
intermediary-manager, with respect to the reinsurer, for the purposes of this
article:



(1)  An employee of the reinsurer;



(2)  A United States manager of the United States branch of an alien reinsurer;



(3)  An underwriting manager who, pursuant to contract,
manages all the reinsurance operations of the reinsurer, is under common
control with the reinsurer, subject to article 11, and whose compensation is
not based on the volume of premiums written; and



(4)  The manager of a group, association, pool, or
organization of insurers that engages in joint underwriting or joint
reinsurance and who is subject to examination by the commissioner of the state
in which the manager's principal business office is located.



"Reinsurer" means any person, firm,
association, or corporation duly licensed in this State pursuant to the
applicable provisions of the insurance law as an insurer with the authority to
assume reinsurance.



"To be in violation" means that the
reinsurance intermediary, or insurer or reinsurer for whom the reinsurance
intermediary was acting failed to substantially comply with this article. [L
1992, c 176, pt of §6; am L 2002, c 155, §37]