[ARTICLE9B]

REINSURANCEINTERMEDIARY

 

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 purposesof this article:

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

"Controlling person" means anyindividual, firm, association, or corporation that directly or indirectly hasthe power to direct or cause to be directed, the management, control, oractivities of the reinsurance intermediary.

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

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

"Qualified United States financialinstitution" 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 UnitedStates federal or state authorities having regulatory authority over banks andtrust companies; and

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

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

"Reinsurance intermediary-broker" or"RB" means any person, other than an officer or employee of theceding insurer, firm, association, or corporation that solicits, negotiates, orplaces reinsurance cessions or retrocessions on behalf of a ceding insurerwithout 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 hasauthority to bind or manages all or part of the assumed reinsurance business ofa reinsurer (including the management of a separate division, department, orunderwriting office) and acts as an agent for the reinsurer whether known as areinsurance intermediary-manager, manager, or other similar term. Notwithstanding the above, the following persons shall not be considered a reinsuranceintermediary-manager, with respect to the reinsurer, for the purposes of thisarticle:

(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 commoncontrol with the reinsurer, subject to article 11, and whose compensation isnot based on the volume of premiums written; and

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

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

"To be in violation" means that thereinsurance intermediary, or insurer or reinsurer for whom the reinsuranceintermediary was acting failed to substantially comply with this article. [L1992, c 176, pt of §6; am L 2002, c 155, §37]