23-62-409. Prohibited acts.

Arkansas Code — all titles (historical 2020) · legal_authorities

23-62-409. Prohibited acts.

23-62-409. Prohibited acts. The reinsurance intermediary manager shall not: (1)(A) Bind retrocessions on behalf of the reinsurer, except that the reinsurance intermediary manager may bind facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. (B) The guidelines shall include a list of reinsurers with which the automatic agreements are in effect, and for each 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 he or she 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 percent (1%) of the reinsurer's policyholder's surplus as of December 31 of the last complete calendar year; (5)(A) Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. (B) 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; or (7) Appoint a reinsurance intermediary submanager.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-62-409

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.