Sec. 4152.215. PROHIBITIONS. (a) A reinsurance intermediary acting as a manager may not:
(1) bind retrocessions on behalf of an insurer, except that the manager may bind facultative retrocessions under obligatory retrocessional agreements if the contract entered into with the insurer under Section 4152.201 contains reinsurance underwriting guidelines for those retrocessions that include:
(A) a list of reinsurers with whom those automatic agreements are in effect; and
(B) for each reinsurer:
(i) the coverages and amounts or percentages that may be reinsured; and
(ii) commission schedules;
(2) commit an insurer to participate in a reinsurance syndicate;
(3) appoint or contract with a broker without ensuring that the broker is qualified to act as a manager under this chapter;
(4) without prior approval of the insurer, pay or commit an insurer to pay a claim that exceeds the lesser of:
(A) an amount specified by the insurer; or
(B) one percent of the insurer's policyholders' surplus as of December 31 of the last complete calendar year; or
(5) collect a payment from a retrocessionaire or commit an insurer to a claim settlement with a retrocessionaire without prior approval of the insurer.
(b) If prior approval is given as provided by Subsection (a)(5), a report must be forwarded to the reinsurer as provided by Section 4152.203.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
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