Illinois Compiled Statutes 215 ILCS 100/40 – Prohibited acts
Current as of: 2024 | Check for updates
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An intermediary manager shall not:
(1) Cede retrocessions on behalf of the reinsurer,
(1) Cede retrocessions on behalf of the reinsurer,
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except that it may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for those retrocessions. The guidelines shall include a list of reinsurers with which automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured and commission schedules.
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(2) Commit the reinsurer to participate in
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reinsurance syndicates.
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(3) Appoint any producer without assuring that the
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producer is lawfully licensed to transact the type of reinsurance for which he is appointed.
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(4) Without prior approval of the reinsurer, pay or
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commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or 1% of the reinsurer’s policyholder’s surplus as of December 31 of the last complete calendar year.
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(5) Collect any payment from a retrocessionaire or
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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.
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(6) Jointly employ an individual who is employed by
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the reinsurer unless the intermediary manager is under common control with the reinsurer subject to Article VIII 1/2 of the Illinois Insurance Code.
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(7) Appoint an intermediary sub-manager.
Terms Used In Illinois Compiled Statutes 215 ILCS 100/40
- Contract: A legal written agreement that becomes binding when signed.
- individual: shall include every infant member of the species homo sapiens who is born alive at any stage of development. See Illinois Compiled Statutes 5 ILCS 70/1.36
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.