Arizona Laws 20-486.08. Duties of reinsurers utilizing the services of a reinsurance intermediary manager
A. A reinsurer shall not engage the services of a person, firm, association or corporation to act as a reinsurance intermediary manager on its behalf unless the person is licensed as required by Section 20-486.01.
Terms Used In Arizona Laws 20-486.08
- Actuary: means a person who is a member in good standing of the American academy of actuaries. See Arizona Laws 20-486
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Insurer: means a person, firm, association or corporation licensed to transact insurance business in this state. See Arizona Laws 20-486
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Reinsurance intermediary: means a reinsurance intermediary broker or a reinsurance intermediary manager. See Arizona Laws 20-486
- Reinsurance intermediary manager: means a person, firm, association or corporation that has authority to bind or manage all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department or underwriting office, and that acts as an agent for the reinsurer whether the reinsurer is known as a reinsurance intermediary manager, a manager or another similar term. See Arizona Laws 20-486
- Reinsurer: means a person, firm, association or corporation licensed to transact reinsurance business in this state. See Arizona Laws 20-486
B. The reinsurer annually shall obtain a copy of the statements on the financial condition of each reinsurance intermediary manager that the reinsurer has engaged. The statements shall be prepared by an independent certified accountant in a form acceptable to the director.
C. If a reinsurance intermediary manager establishes loss reserves, the reinsurer annually shall obtain the opinion of an actuary attesting to the adequacy of loss reserves that are established for losses incurred and outstanding on business produced by the reinsurance intermediary manager. The actuary’s opinion is in addition to any other required loss reserve certification.
D. An officer of the reinsurer who is not affiliated with the reinsurance intermediary manager has binding authority for all retrocessional contracts or participation in reinsurance syndicates.
E. Within thirty days of termination of a contract with a reinsurance intermediary manager, the reinsurer shall provide written notification to the director of the termination.
F. A reinsurer shall not appoint to its board of directors an officer, director, employee, controlling shareholder or subproducer of its reinsurance intermediary manager. This subsection does not apply to relationships that are governed by the holding company act or, if applicable, the broker controlled insurer act.