Ch. 36

1995 LAWS OF MARYLAND

In subsection (h)(1) of this section, the reference to a "controlled insurer" is
substituted for the former inaccurate reference to a "controlled insured".

Defined terms: "Commissioner" § 1-101
"Control" § 1-101
"Controlled insurer" § 8-101
"Controlling broker" § 8-101
"Insurance business" § 1-101
"Policy" § 1-101
"Premium" § 1-101

8-106. PLACEMENT OR ACCEPTANCE OF BUSINESS BY REINSURANCE
INTERMEDIARY.

(A)     "REINSURANCE INTERMEDIARY" DEFINED.

"REINSURANCE INTERMEDIARY" MEANS A PERSON THAT ACTS AS A BROKER
IN:                                       

(1)      SOLICITING, NEGOTIATING, OR PROCURING A REINSURANCE
CONTRACT OR BINDER FOR A CEDING INSURER; OR

(2)      ACCEPTING A REINSURANCE CONTRACT OR BINDER FOR AN
ASSUMING INSURER.

(B)      SCOPE OF SECTION.

THIS SECTION DOES NOT APPLY TO A REINSURANCE INTERMEDIARY THAT
MAKES A COMPLETE WRITTEN DISCLOSURE TO THE PARTIES OF ITS RELATIONSHIP
WITH THE ASSUMING . OR CEDING INSURER BEFORE COMPLETION OF THE
TRANSACTION.

(C)     PLACEMENT OF BUSINESS WITH ASSUMING INSURER.

A REINSURANCE INTERMEDIARY THAT HAS CONTROL OF AN ASSUMING
INSURER MAY NOT DIRECTLY OR INDIRECTLY PLACE INSURANCE BUSINESS WITH
THE ASSUMING INSURER IN A TRANSACTION IN WHICH THE REINSURANCE
INTERMEDIARY ACTS AS A BROKER FOR THE CEDING INSURER.

(D)     ACCEPTANCE OF BUSINESS FROM CEDING INSURER.

A REINSURANCE INTERMEDIARY THAT HAS CONTROL OF A CEDING INSURER
MAY NOT DIRECTLY OR INDIRECTLY ACCEPT BUSINESS FROM THE CEDING INSURER
IN A TRANSACTION IN WHICH THE REINSURANCE INTERMEDIARY ACTS AS A
BROKER FOR THE ASSUMING INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 661(b) and 663(b).

In subsection (b) of this section, the former word "full", which modified
"written disclosure", is deleted as included in the word "complete".

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