§ 26.1-31.1-01 — Definitions

North Dakota § 26.1-31.1-01

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-31.1: Reinsurance Intermediaries

Text

As used in this chapter:
1. "Actuary" means a person who is a member in good standing of the American
academy of actuaries.
2. "Controlling person" means any person, firm, association, corporation, or limited
liability company who directly or indirectly has the power to direct or cause to be
directed, the management, control, or activities of the reinsurance intermediary.
3. "Insurer" means any person, firm, association, or corporation duly licensed in this state
pursuant to the applicable provisions of the insurance law as an insurer.
4. "Licensed producer" means an insurance producer or reinsurance intermediary
licensed pursuant to the applicable provision of this title.
5. "Qualified United States financial institution" means an institution that:
a. Is organized or in the case of a United States office of a foreign banking
organization, is licensed, under the laws of the United States or any state thereof;
b. Is regulated, supervised, and examined by United States federal or state
authorities having regulatory authority over banks and trust companies; and
c. Has been determined by either the commissioner, or the securities valuation
office of the national association of insurance commissioners, to meet standards
of financial condition and standing considered necessary and appropriate to
regulate the quality of financial institutions whose letters of credit will be
acceptable to the commissioner.
6. "Reinsurance intermediary" means a reinsurance intermediary-broker or a reinsurance
intermediary-manager as these terms are defined in subsections 7 and 8.
7. "Reinsurance intermediary-broker" means any person, other than an officer or
employee of the ceding insurer, firm, association, or corporation who solicits,
negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding
insurer without the authority or power to bind reinsurance on behalf of such insurer.
8. "Reinsurance intermediary-manager" means any person, firm, association,
corporation, or limited liability company who has authority to bind or manages all or
part of the assumed reinsurance business of a reinsurer, including the management of
a separate division, department, or underwriting office, and acts as an agent for the
reinsurer whether known as a reinsurance intermediary-manager, manager, or other
similar term. Notwithstanding this definition, the following persons may not be
considered a reinsurance intermediary-manager, with respect to such reinsurer, for the
purposes of this chapter:
a. An employee of the reinsurer.
b. A United States manager of the United States branch of an alien reinsurer.
c. An underwriting manager which, pursuant to contract, manages all or part of the
reinsurance operations of the reinsurer, is under common control with the
reinsurer and subject to chapter 26.1-10, and whose compensation is not based
on the volume of premiums written.
d. The manager of a group, association, pool, or organization of insurers which
engage in joint underwriting or joint reinsurance and who are subject to
examination by the insurance commissioner of the state in which the manager's
principal business office is located.
9. "Reinsurer" means any person, firm, association, or corporation duly licensed in this
state pursuant to the applicable provisions of this title as an insurer with the authority
to assume reinsurance.
10. "To be in violation" means that the reinsurance intermediary, insurer, or reinsurer for
whom the reinsurance intermediary was acting failed to substantially comply with the
provisions of this chapter.