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

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

(2)  Commit the reinsurer to participate inreinsurance syndicates;

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

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

(5)  Collect any payment from a retrocessionaire orcommit the reinsurer to any claim settlement with a retrocessionaire, withoutprior approval of the reinsurer.  If prior approval is given, a report must bepromptly forwarded to the reinsurer;

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

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