§ 26-47-109 — Prohibited acts

(a) The reinsurance intermediary manager shall not:
(i) Cede retrocessions on behalf of the reinsurer;
(ii) Commit the reinsurer to participate in
reinsurance syndicates;
(iii) Appoint any producer without assuring that the
producer is lawfully licensed to transact the type of
reinsurance for which he is appointed;
(iv) 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 (1%) of the reinsurer's surplus as regards
policyholders as of December 31 of the last complete calendar
year;
(v) 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 on the payment or the claim
settlement shall be promptly forwarded to the reinsurer;
(vi) 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 System Act;
(vii) Appoint a subreinsurance intermediary manager.