§ 1781.3. — 1781.3. (Amended by Stats. 2017, Ch. 534, Sec. 48.)

California § 1781.3.

• Jurisdiction: California
• Code INS: Insurance Code - INS
• Div. 1.: DIVISION 1. GENERAL RULES GOVERNING INSURANCE
• Part 2.: PART 2. THE BUSINESS OF INSURANCE
• Ch. 6.5.: CHAPTER 6.5. Reinsurance Intermediaries

Text

(a)
No person, firm, association, or corporation shall act as a reinsurance intermediary-broker in this state unless licensed as follows:
(1)
If the reinsurance intermediary-broker maintains an office, (either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation) in this state, the reinsurance intermediary-broker shall be a licensed producer in this state.
(2)
If the reinsurance intermediary-broker does not maintain an office in this state, the reinsurance intermediary-broker shall be a licensed producer in this state or another state having a law substantially similar to this chapter or shall be
licensed in this state as a nonresident reinsurance intermediary.
(3)
Unless denied licensure pursuant to subdivision (e), a nonresident person shall receive a reinsurance intermediary-broker license if all of the following requirements are met:
(A)
The person is currently licensed and in good standing in the state, territory of the United States, or province of Canada where he or she is licensed as a resident reinsurance intermediary-broker.
(B)
The person has submitted the proper request for licensure and has paid the fees required by paragraph (3) of subdivision (d).
(C)
The person has submitted or transmitted to the commissioner the application for licensure that the person submitted to the state, territory of the United States, or province of
Canada where he or she is licensed as a resident, or submitted or transmitted to the commissioner a completed National Association of Insurance Commissioners Uniform Nonresident Application.
(D)
The state, territory of the United States, or province of Canada where the person holds a resident reinsurance intermediary-broker license awards nonresident reinsurance intermediary-broker licenses to residents of this state on the same basis.
(b)
A person, firm, association, or corporation shall not act as a reinsurance intermediary-manager:
(1)
For a reinsurer domiciled in this state, unless the reinsurance intermediary-manager is a licensed producer in this state.
(2)
In this state, if the reinsurance intermediary-manager maintains an office either directly
or as a member or employee of a firm or association, or as an officer, director, or employee of a corporation in this state, unless the reinsurance intermediary-manager is a licensed producer in this state.
(3)
In another state for a nondomestic admitted insurer, unless the reinsurance intermediary-manager is a licensed producer in this state or in another state having a law substantially similar to this chapter or the person is licensed in this state as a nonresident reinsurance intermediary.
(4)
Unless denied licensure pursuant to subdivision (e), a nonresident person shall receive a reinsurance intermediary-manager license if all of the following requirements are met:
(A)
The person is currently licensed and in good standing in the state, territory of the United States, or province of Canada where he or she is
licensed as a resident reinsurance intermediary-manager.
(B)
The person has submitted the proper request for licensure and has paid the fees required by paragraph (3) of subdivision (d).
(C)
The person has submitted or transmitted to the commissioner the application for licensure that the person submitted to the state, territory of the United States, or province of Canada where he or she is licensed as a resident, or submitted or transmitted to the commissioner a completed National Association of Insurance Commissioners Uniform Nonresident Application.
(D)
The state, territory of the United States, or province of Canada where the person holds a resident reinsurance intermediary-manager license awards nonresident reinsurance intermediary-manager licenses to residents of this state on the same basis.
(c)
The commissioner may require a reinsurance intermediary-manager subject to subdivision (b) to do both of the following:
(1)
File a fidelity bond issued by an admitted surety in an amount determined by the commissioner for the protection of the reinsurer.
(2)
Maintain an errors and omissions policy in an amount acceptable to the commissioner.
(d)
(1)
The commissioner may issue a reinsurance intermediary license to any person, firm, association, or corporation that has complied with the applicable requirements of this chapter. This license, when issued to a firm or association, authorizes all the members of the firm or association and any designated employees to act as reinsurance intermediaries under the license, and all these
persons shall be named in the application and any supplements thereto. This license, when issued to a corporation, authorizes all of the officers, and any designated employees and directors thereof to act as reinsurance intermediaries on behalf of the corporation, and all these persons shall be named in the application and any supplements thereto.
(2)
Any application for licensure as a reinsurance intermediary under this subdivision shall be made on a form prescribed by the commissioner and shall be accompanied by an application fee of three hundred seventy-four dollars ($374).
(e)
The commissioner may refuse to issue a reinsurance intermediary license if, in his or her judgment, the applicant, any person named on the application, or any member, principal, officer, or director of the applicant, is determined by the commissioner not to be trustworthy, or that any controlling person
of the applicant is not trustworthy to act as a reinsurance intermediary, or that any of the foregoing has given cause for revocation or suspension of a reinsurance intermediary license, or has failed to comply with any prerequisite for the issuance of a license. Upon written request therefor, the commissioner shall furnish the applicant with a summary of the basis for refusal to issue a reinsurance intermediary license, which document shall not be subject to inspection as a public record.
(f)
Licensed attorneys at law when acting in their professional capacity as such shall be exempt from this section.
(g)
A reinsurance intermediary-manager, when acting in that capacity and in compliance with this chapter, shall not be required to separately comply with Article 5.4 (commencing with Section 769.80) of Chapter 1 (if added by Senate Bill 1039 of the 1991–92 Regular Session) in order
to engage in conduct authorized by both this chapter and that article.

Legislative History

Amended by Stats. 2017, Ch. 534, Sec. 48. (AB 1699) Effective January 1, 2018.