PARRIS N. GLENDENING, Governor

Ch. 36

In subsection (b)(5) of this section, the reference to "assuming" reinsurers is
added to conform to the terminology used in subsection (c) of this section and
in § 8-514(b)(5) of this subtitle.

Defined terms: "Authorized insurer" § 1-101
"Premium" § 1-101
"Reinsurance" § 1-101
"Reinsurance manager" § 8-501
"Reinsurer" § 8-501

8-517. ACTS OF REINSURANCE MANAGER.

THE ACTS OF A REINSURANCE MANAGER ARE CONSIDERED TO BE THE ACTS
OF THE REINSURER ON WHOSE BEHALF THE REINSURANCE MANAGER IS ACTING.

REVISOR'S NOTE: This section formerly was Art. 48A, § 729.

The reference to the acts of the reinsurer on whose behalf "the reinsurance
manager" is acting is substituted for the former reference to the acts of the
reinsurer on whose behalf "it" is acting for clarity.

The only other changes are in style.

Defined terms: "Reinsurance manager" § 8-501
"Reinsurer" § 8-501

8-518. RESTRICTIONS ON ACTIVITIES OF REINSURANCE MANAGER.

(A) IN GENERAL.

A REINSURANCE MANAGER:

(1)     EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, MAY
NOT CEDE RETROCESSIONS FOR A REINSURER;

(2)      MAY NOT COMMIT A REINSURER TO PARTICIPATE IN REINSURANCE
SYNDICATES;

(3)     MAY NOT APPOINT OR HIRE AN AGENT TO SOLICIT, PROCURE, OR
NEGOTIATE REINSURANCE CONTRACTS FOR A REINSURER WITHOUT ENSURING
THAT THE AGENT IS QUALIFIED UNDER TITLE 10, SUBTITLE 1 OF THIS ARTICLE;

(4)      MAY NOT TAKE AN ACTION THAT WOULD CONSTITUTE A
VIOLATION OF § XX-XXX [ART. 48A, § 234B] OF THIS ARTICLE IF TAKEN DIRECTLY BY
A REINSURER;

(5)     WITHOUT THE REINSURER'S PRIOR WRITTEN APPROVAL, MAY NOT
PAY OR COMMIT A REINSURER TO PAY A CLAIM, NET OF REINSURANCE, THAT
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:

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