WILLIAM DONALD SCHAEFER, Governor

Ch. 405

(2)      COMMIT THE REINSURER TO PARTICIPATE IN REINSURANCE
SYNDICATES;

(3)      APPOINT OR HIRE ANY AGENT TO SOLICIT, PROCURE, OR
NEGOTIATE REINSURANCE CONTRACTS ON BEHALF OF A REINSURER WITHOUT
ASSURING THAT THE AGENT IS QUALIFIED UNDER § 167 OF THIS ARTICLE;

(4)      TAKE ANY ACTION THAT WOULD CONSTITUTE A VIOLATION OF §
234B OF THIS ARTICLE IF TAKEN DIRECTLY BY THE INSURER;

(5)      WITHOUT THE REINSURER'S WRITTEN APPROVAL, PAY OR COMMIT
THE REINSURER TO PAY A CLAIM, NET OF REINSURANCE, WHICH EXCEEDS THE
LESSER OF 1% OF THE REINSURER'S POLICYHOLDER SURPLUS AS OF THE
PRECEDING CALENDAR YEAR AND AN AMOUNT SPECIFIED BY THE REINSURER;

(6)      SUBJECT TO SUBSECTION (B) OF THIS SECTION AND WITHOUT THE
REINSURER'S PRIOR WRITTEN APPROVAL:

(I)       COLLECT ANY PAYMENT FROM A RETROCESSIONAIRE; OR

(II)     COMMIT THE REINSURER TO ANY CLAIM SETTLEMENT WITH A
RETROCESSIONAIRE;

(7)      APPOINT A SUBREINSURANCE MANAGER; OR

(8)      EMPLOY AN INDIVIDUAL WHO IS ALSO EMPLOYED BY THE
REINSURER UNLESS THE REINSURANCE MANAGER IS UNDER COMMON CONTROL
WITH THE REINSURER SUBJECT TO SUBTITLE 32 OF THIS ARTICLE.

(B) A REINSURANCE MANAGER MAY CEDE FACULTATIVE REINSURANCE
CONTRACTS PURSUANT TO OBLIGATORY FACULTATIVE AGREEMENTS IF THE
CONTRACT WITH THE REINSURER CONTAINS REINSURANCE UNDERWRITING
GUIDELINES, FOR THE RETROCESSIONS INCLUDING:

(1)      A LIST OF REINSURERS WITH WHICH ANY AUTOMATIC
AGREEMENTS ARE IN EFFECT;

(2)      THE COVERAGES AND AMOUNTS OR PERCENTAGES THAT MAY BE
REINSURED; AND

(3)      THE COMMISSION SCHEDULES.

716.

(A)     SUBJECT TO THE HEARING PROVISIONS OF §§ 35 THROUGH 39 OF THIS
ARTICLE, THE COMMISSIONER MAY REFUSE TO ISSUE OR RENEW, OR MAY REVOKE
OR SUSPEND A REINSURANCE INTERMEDIARY'S LICENSE, OR A REINSURANCE
INTERMEDIARY'S AGENT OR BROKER'S CERTIFICATE OF QUALIFICATION, IF THE
REINSURANCE INTERMEDIARY HAS VIOLATED ANY PROVISION OF THIS SUBTITLE
OR § 175 OF THIS ARTICLE.

(B)      IN LIEU OF OR IN ADDITION TO THE PENALTIES PROVIDED IN
SUBSECTION (A) OF THIS SECTION, THE COMMISSIONER MAY:

- 2243 -