§ 56-6-802 — Part definitions

As used in this part, unless the context otherwise requires: (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 or corporation 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 this title as an insurer; (4) "Licensed producer" means an agent, broker or reinsurance intermediary licensed pursuant to the applicable provisions 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, licensed, under the laws of the United States or any state; (B) Is regulated, supervised and examined by 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 the 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; provided, that an entity that controls, is controlled by or under common control with the reinsurer, and that facilitates the administration of reinsurance business pursuant to a reinsurance agreement between the ceding company and the reinsurer, is not a reinsurance intermediary; (7) "Reinsurance intermediary broker (RB)" 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 the insurer; (8) (A) "Reinsurance intermediary manager (RM)" means any person, firm, association or corporation that 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 an RM, manager or other similar term; (B) Notwithstanding subdivision (8)(A), the following persons shall not be considered an RM, with respect to such reinsurer, for the purposes of this part: (i) An employee of the reinsurer; (ii) A United States manager of the United States branch of an alien reinsurer; (iii) An underwriting manager who, pursuant to contract, manages all the reinsurance operations of the reinsurer, is under common control with the reinsurer, subject to chapter 11 of this title, and whose compensation is not based on the volume of premiums written; or (iv) The manager of a group, association, pool or organization of insurers that engage in joint underwriting or joint reinsurance and that 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; and (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 this part.

Legislative History

Acts 1993, ch. 253, § 9.