[§431:9B-108]  Duties of reinsurersutilizing the services of a reinsurance intermediary-manager.  (a)  Areinsurer shall not engage the services of any person, firm, association, orcorporation to act as a reinsurance intermediary-manager on its behalf unlessthe person, firm, association, or corporation is licensed as required bysection 431:9B-102(b).

(b)  The reinsurer shall annually obtain a copyof statements of the financial condition of each reinsuranceintermediary-manager which the reinsurer has engaged prepared by an independentcertified accountant in a form acceptable to the commissioner.

(c)  If a reinsurance intermediary-managerestablishes loss reserves, the reinsurer shall annually obtain the opinion ofan actuary attesting to the adequacy of loss reserves established for lossesincurred and outstanding on business produced by the reinsuranceintermediary-manager.  This opinion shall be in addition to any other requiredloss reserve certification.

(d)  Binding authority for all retrocessionalcontracts or participation in reinsurance syndicates shall rest with an officerof the reinsurer who shall not be affiliated with the reinsuranceintermediary-manager.

(e)  Within thirty days of termination of acontract with a reinsurance intermediary-manager, the reinsurer shall providewritten notification of the termination to the commissioner.

(f)  A reinsurer shall not appoint to its boardof directors any officer, director, employee, controlling shareholder, orsubagent of its reinsurance intermediary-manager; provided that this subsectionshall not apply to relationships governed by article 11. [L 1992, c 176, pt of§6]