§ 38-46-80 — Acts prohibited of reinsurance intermediary-manager.

South Carolina § 38-46-80

• Jurisdiction: South Carolina
• Title 38: INSURANCE
• Ch. 46: REINSURANCE INTERMEDIARY ACT

Text

The reinsurance intermediary-manager may not: (1) cede retrocessions on behalf of the reinsurer, except the reinsurance intermediary-manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for the retrocessions. The guidelines must include a list of reinsurers with which the automatic agreements are in effect and for each 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 a licensed producer without assuring that the licensed producer is licensed lawfully 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 fifty thousand dollars or one percent of the reinsurer's policyholder's surplus as of December thirty-first of the last completed calendar year, whichever is less; (5) collect payment from a retrocessionaire or commit the reinsurer to a claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report must be forwarded to the reinsurer within ten days; (6) jointly employ an individual who is employed by the reinsurer unless the reinsurance intermediary-manager is under common control with the reinsurer subject to the Insurance Holding Company Regulatory Act; (7) appoint a reinsurance intermediary-submanager.

Legislative History

HISTORY: 1992 Act No. 332, SECTION 1.