[§431:9B-107]  Prohibited acts.  The
reinsurance intermediary-manager shall not:



(1)  Cede retrocessions on behalf of the reinsurer,
except that the reinsurance intermediary-manager may cede facultative
retrocessions pursuant to obligatory facultative agreements if the contract
with the reinsurer contains reinsurance underwriting guidelines for such
retrocessions.  The guidelines shall include a list of reinsurers with which
those automatic agreements are in effect, and for each such reinsurer, the
coverages and amounts or percentages that may be reinsured, and commission
schedules;



(2)  Commit the reinsurer to participate in
reinsurance syndicates;



(3)  Appoint any producer without assuring that the
producer is lawfully licensed to transact the type of reinsurance for which the
producer is appointed;



(4)  Without prior approval of the reinsurer, pay or
commit the reinsurer to pay, a claim, net of retrocessions, that exceeds the
lesser of an amount specified by the reinsurer or one per cent of the
reinsurer's policyholder's surplus as of December 31 of the last complete
calendar year;



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



(6)  Jointly employ an individual who is employed by
the reinsurer unless the reinsurance intermediary-manager is under common
control with the reinsurer subject to article 11; or



(7)  Appoint a sub-reinsurance intermediary-manager.
[L 1992, c 176, pt of §6]