Vermont Statutes Title 8 Sec. 4823
Terms Used In Vermont Statutes Title 8 Sec. 4823
- Fees: shall mean earnings due for official services, aside from salaries or per diem compensation. See
- insurer: means any person, firm, association, or corporation duly licensed to transact an insurance business in this State. See
- Managing general agent: means any person who:
- Producer: means an agent, broker, or reinsurance intermediary licensed pursuant to subchapter 1 of this chapter. See
- Reinsurance intermediary: means a reinsurance intermediary-broker or a reinsurance intermediary-manager as defined in subdivisions (10) and (11) of this section. See
- Reinsurance intermediary-manager: means any person who 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 such reinsurer whether known as a reinsurance intermediary-manager, manager, or other similar term. See
- Reinsurer: means any person, firm, association, or corporation duly licensed in this State pursuant to the applicable provisions of the insurance law as an insurer with the authority to assume reinsurance. See
- 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.
§ 4823. Other requirements of managing general agents and reinsurance intermediaries
(a) Managing general agents and reinsurance intermediaries shall not:
(1) commit the insurer or reinsurer to participate in insurance or reinsurance syndicates;
(2) appoint any producer without assuring that the producer is lawfully licensed to transact the type of insurance for which he or she is appointed;
(3) pay or commit the insurer to pay a claim, net of reinsurance or retrocessions, that exceeds one percent of the insurer’s or reinsurer’s policyholders’ surplus as of December 31 of the last completed calendar year without prior approval of the insurer or reinsurer;
(4) collect any payment from a reinsurer or retrocessionaire or commit the insurer or reinsurer to any claim settlement with a reinsurer or retrocessionaire without prior approval of the insurer or reinsurer. If prior approval is given, a report must be promptly forwarded to the insurer or reinsurer;
(5) permit its subproducer to serve on the insurer’s board of directors;
(6) jointly employ an individual who is employed with the insurer or reinsurer unless such reinsurance intermediary-manager is under common control with the reinsurer subject to chapter 101, subchapter 13 of this title;
(7) appoint a sub-managing general agent or sub-reinsurance intermediary-manager; or
(8) pay interim profits until one year after the end of each underwriting period for property business and five years after the end of each underwriting period for casualty business, or a later period set by the Commissioner for specified lines of insurance, and not until the adequacy of reserves on remaining claims has been verified pursuant to subdivision 4819(a)(2) or 4819(c)(3) of this title, if the managing general agent or reinsurance intermediary set reserves.
(b) The reinsurance intermediary shall:
(1) disclose in writing to the insurer any relationship with the ceding or assuming insurer and the rates, terms, and purposes of commissions, charges, and other fees that the reinsurance intermediary-manager may levy against the reinsurer; and
(2) provide the reinsurer with a statement of its financial condition.
(c) The acts of the reinsurance intermediary-manager shall be deemed to be the acts of the reinsurer on whose behalf it is acting within the scope of its actual or apparent authority. (Added 1991, No. 249 (Adj. Sess.), § 18, eff. Jan. 1, 1993.)