§ 10-2-908 — Prohibited acts

Colorado § 10-2-908

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Licenses

Text

(1) The RM shall not:

(a) Bind retrocessions on behalf of the reinsurer; except that the RM may
bind facultative retrocessions pursuant to obligatory facultative agreements if the
contract with the reinsurer contains reinsurance underwriting guidelines for such
retrocessions. Such guidelines shall include a list of reinsurers with which such
automatic agreements are in effect, and for each such reinsurer, the coverages and
amounts or percentages that may be reinsured, and commission schedules.

(b) Commit the reinsurer to participate in reinsurance syndicates;

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

(d) 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 of the reinsurer's policyholder's surplus as of
December 31 of the last complete calendar year;

(e) Collect any payment from a retrocessionaire or commit the reinsurer to
any claim settlement with a retrocessionaire, without prior approval of the
reinsurer. If prior approval is given, a report shall be promptly forwarded to the
reinsurer.

(f) Jointly employ an individual who is employed by the reinsurer;

(g) Appoint a sub-RM.

Legislative History

Source: L. 93: Entire article R&RE, p. 1381, � 1, effective January 1, 1995.