Sec. 22. (a) A RM may not bind retrocessions on behalf of the reinsurer, except that the RM may bind facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. Guidelines referred to in this subsection must include a list of reinsurers with which the automatic agreements are in effect, and, for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.

     (b) A RM may not commit the reinsurer to participate in reinsurance syndicates.

Terms Used In Indiana Code 27-6-9-22

  • Contract: A legal written agreement that becomes binding when signed.
  • reinsurer: means any person, firm, association, or corporation duly licensed in Indiana pursuant to the applicable provisions of the insurance law as an insurer with the authority to assume reinsurance. See Indiana Code 27-6-9-9
  • 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.
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
     (c) A RM may not appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which the producer is appointed.

     (d) A RM may not, without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of:

(1) an amount specified by the reinsurer; or

(2) one percent (1%) of the reinsurer’s policyholder’s surplus as of December 31 of the last complete calendar year before the payment or commitment.

     (e) A RM may not 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 must be promptly forwarded to the reinsurer.

     (f) A RM may not jointly employ an individual who is employed by the reinsurer.

     (g) A RM may not appoint a sub-RM.

As added by P.L.26-1991, SEC.26.

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