§ 26.1-31.1-07 — Prohibited acts

North Dakota § 26.1-31.1-07

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

Text

The reinsurance intermediary-manager may not:
1. 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. The guidelines must include a list of
reinsurers with which the automatic agreements are in effect, and for each such
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 the producer 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 of the reinsurer's policyholder's surplus as of December thirty-first of the
last complete calendar year.
5. 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 must be promptly forwarded to the reinsurer.
6. Jointly employ an individual who is employed by the reinsurer unless such reinsurance
intermediary-manager is under common control with the reinsurer subject to chapter
26.1-10.
7. Appoint a subreinsurance intermediary-manager.