Ch. 405                                         1993 LAWS OF MARYLAND

(B)      AN AUTHORIZED INSURER MAY NOT EMPLOY ANY INDIVIDUAL WHO
ALSO IS EMPLOYED BY THE SAME REINSURANCE BROKER THAT TRANSACTS
BUSINESS WITH THE AUTHORIZED INSURER, UNLESS THE REINSURANCE BROKER IS
UNDER COMMON CONTROL WITH THE AUTHORIZED INSURER AND IS SUBJECT TO
SUBTITLE 32 OF THIS ARTICLE.

(C)     AN AUTHORIZED INSURER SHALL OBTAIN ANNUALLY A COPY OF
STATEMENTS OF THE FINANCIAL CONDITION OF EACH REINSURANCE BROKER
THAT TRANSACTS BUSINESS WITH THE AUTHORIZED INSURER.

(D)     AN AUTHORIZED INSURER WHO VIOLATES THE PROVISIONS OF THIS
SUBTITLE IS SUBJECT TO THE DISCIPLINARY AND PENALTY PROVISIONS OF §§ 55
AND 55A OF THIS ARTICLE.

710.

(A)      (1) A PERSON MAY NOT ACT AS A REINSURANCE MANAGER FOR A
REINSURER WITHOUT A WRITTEN CONTRACT SETTING OUT THE RESPONSIBILITIES
OF THE REINSURANCE MANAGER AND THE REINSURER.

(2)      SUBJECT TO THE APPROVAL OF THE BOARD OF DIRECTORS OF THE
REINSURER, THE CONTRACT SHALL SET OUT THE RESPONSIBILITIES OF A
REINSURANCE MANAGER AND A REINSURER.

(3)      THE REINSURANCE MANAGER MAY NOT ASSIGN THE CONTRACT
REQUIRED UNDER THIS SECTION.

(B)      AT LEAST 30 DAYS BEFORE THE REINSURER ASSUMES OR . CEDES
BUSINESS THROUGH THE REINSURANCE MANAGER, A COPY OF THE CONTRACT
REQUIRED UNDER THIS SECTION SHALL BE FILED WITH THE COMMISSIONER FOR
APPROVAL.

(C)      THE TERMS OF THE CONTRACT REQUIRED UNDER THIS SECTION SHALL
PROVIDE AT A MINIMUM THAT:

(1)      THE REINSURER MAY:

(I)       TERMINATE THE CONTRACT FOR CAUSE UPON WRITTEN
NOTICE TO THE REINSURANCE MANAGER; AND

(II)     SUSPEND IMMEDIATELY THE AUTHORITY OF THE
REINSURANCE MANAGER TO ASSUME OR CEDE BUSINESS DURING THE PENDENCY
OF ANY DISPUTE REGARDING THE TERMINATION;

(2)      THE REINSURANCE MANAGER SHALL:

(I)       RENDER ACCOUNTS TO THE REINSURER DETAILING ALL
MATERIAL TRANSACTIONS, INCLUDING INFORMATION NECESSARY TO SUPPORT
ALL COMMISSIONS, CHARGES, AND OTHER FEES RECEIVED BY OR OWED TO THE
REINSURANCE MANAGER; AND

(II)     REMIT AT LEAST MONTHLY ALL FUNDS DUE, UNDER THE
CONTRACT TO THE REINSURER;                                                

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