§431:9B-102  Licensure.  (a)  No person,firm, association, or corporation shall act as a reinsuranceintermediary-broker in this State if the reinsurance intermediary-brokermaintains an office either directly or as a member or employee of a firm orassociation or as an officer, director, or employee of a corporation:

(1)  In this State, unless the reinsuranceintermediary-broker is a licensed producer in this State; or

(2)  In another state, unless the reinsuranceintermediary-broker is a licensed producer in this State or another statehaving a law substantially similar to this law, or such reinsuranceintermediary-broker is licensed in this State as a nonresident reinsuranceintermediary.

(b)  No person, firm, association, orcorporation shall act as a reinsurance intermediary-manager:

(1)  For a reinsurer domiciled in this State, unlessthe reinsurance intermediary-manager is a licensed producer in this State;

(2)  In this State, if the reinsuranceintermediary-manager maintains an office either directly or as a member oremployee of a firm or association, or an officer, director, or employee of acorporation in this State, unless the reinsurance intermediary-manager is alicensed producer in this State; or

(3)  In another state for a nondomestic insurer,unless the reinsurance intermediary-manager is a licensed producer in thisState or another state having a law substantially similar to this law, or theperson is licensed in this State as a nonresident reinsurance intermediary.

(c)  The commissioner shall require areinsurance intermediary-manager subject to subsection (b) to:

(1)  File a bond from an insurance company licensed todo business within the State or with an insurance company approved by thecommissioner in an amount equal to $500,000 or ten per cent of the annualreinsurance premiums managed by the reinsurance intermediary-manager, whicheveris greater, except that the bond amount under this paragraph shall not exceed$10,000,000, for the protection of the reinsurer;

(2)  Maintain an errors and omissions policy, with aninsurance company licensed to do business within the State or with an insurancecompany approved by the commissioner, in an amount equal to $250,000 ortwenty-five per cent of the annual reinsurance premiums managed by the reinsuranceintermediary-manager, whichever is greater, except that the policy limits underthis paragraph shall not exceed $10,000,000; and

(3)  Provide any other report required by thecommissioner.

At the time of application for licensure and eachrenewal, each reinsurance intermediary-manager shall provide the commissionerwith proof of the bond and the policy, and appropriate documentation to showthat the bond and the policy continue to be in effect or that a new bond and anew policy have been secured.

  (d)(1)  The commissioner may issue a reinsuranceintermediary license to any person, firm, association, or corporation that hascomplied with the requirements of this article.  Any such license issued to afirm or association will authorize all the members of that firm or associationand any designated employees to act as reinsurance intermediaries under thelicense, and all those persons shall be named in the application and anysupplements thereto.  Any such license issued to a corporation shall authorizeall of the officers, and any designated employees and directors thereof to actas reinsurance intermediaries on behalf of the corporation, and all thosepersons shall be named in the application and any supplements thereto.

(2)  If the applicant for a reinsurance intermediarylicense is a nonresident, the applicant, as a condition precedent to receivingor holding a license, shall designate the commissioner as agent for service ofprocess in the manner, and with the same legal effect, provided for by thisarticle for service of process upon unauthorized insurers; and also shallfurnish the commissioner with the name and address of a resident of this Stateupon whom notices or orders of the commissioner or process affecting thenonresident reinsurance intermediary may be served.  The licensee shallpromptly notify the commissioner in writing of every change in its designatedagent for service of process, and such change shall not become effective untilacknowledged by the commissioner.

(e)  The commissioner may refuse to issue areinsurance intermediary license if, in the commissioner's judgment, theapplicant, anyone named on the application, or any member, principal, officer,or director of the applicant, is not trustworthy, or that any controlling personof the applicant is not trustworthy to act as a reinsurance intermediary, orthat any of the foregoing has given cause for revocation or suspension of suchlicense, or has failed to comply with any prerequisite for the issuance of thelicense.  Upon written request therefor, the commissioner shall furnish asummary of the basis for refusal to issue a license, which document shall beprivileged and not subject to disclosure pursuant to chapter 92F.

(f)  Licensed attorneys at law of this Statewhen acting in their professional capacity as such shall be exempt from thissection. [L 1992, c 176, pt of §6; am L 2001, c 136, §2; am L 2004, c122, §29; am L 2006, c 189, §6]