Arizona § 20-486.07 Prohibited acts; reinsurance intermediary managers

Arizona Statutes

§ 20-486.07 — Prohibited acts; reinsurance intermediary managers

Arizona § 20-486.07

Title 20Arizona Revised Statutes

Ch. 2TRANSACTION OF INSURANCE BUSINESS

Art. 10Reinsurance Intermediaries

This text of Arizona § 20-486.07 (Prohibited acts; reinsurance intermediary managers) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 20-486.07 (2026).

Text

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 retrocessions. The guidelines shall include a list of reinsurers with whom the automatic agreements are in effect, the coverages and amounts or percentages for each reinsurer that may be reinsured and commission schedules.

2.Commit the reinsurer to participation in reinsurance syndicates.

3.Appoint a producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which he is appointed.

4.Without prior approval of the reinsurer, pay or c

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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 retrocessions. The guidelines shall include a list of reinsurers with whom the automatic agreements are in effect, the coverages and amounts or percentages for each reinsurer that may be reinsured and commission schedules.

2. Commit the reinsurer to participation in reinsurance syndicates.

3. Appoint a producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which he 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. Without prior approval of the reinsurer, collect any payment from a person who receives a retrocession or commit the reinsurer to any claim settlement with a person who receives a retrocession. If prior approval is given, a report shall be forwarded promptly to the reinsurer.

6. Employ jointly an individual who is employed by the reinsurer unless the reinsurance intermediary manager is under common control with the reinsurer subject to the holding company act.

7. Appoint a sub-reinsurance intermediary manager.