Ch. 36

1995 LAWS OF MARYLAND

(I)      MAY NOT COLLECT A PAYMENT FROM A RETROCESSIONAIRE;
OR

(II)     MAY NOT COMMIT A REINSURER TO A CLAIM SETTLEMENT
WITH A RETROCESSIONAIRE;                                                     

(7)     MAY NOT APPOINT A SUBREINSURANCE MANAGER; OR

(8)      MAY NOT EMPLOY AN INDIVIDUAL WHO IS ALSO EMPLOYED BY A
REINSURER THAT TRANSACTS BUSINESS WITH THE REINSURANCE MANAGER,
UNLESS THE REINSURANCE MANAGER IS UNDER COMMON CONTROL WITH THE
REINSURER AND IS SUBJECT TO TITLE 7 OF THIS ARTICLE.

(B) FACULTATIVE AGREEMENTS.

A REINSURANCE MANAGER MAY CEDE FACULTATIVE REINSURANCE
CONTRACTS UNDER OBLIGATORY FACULTATIVE AGREEMENTS IF THE CONTRACT
BETWEEN THE REINSURANCE MANAGER AND 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)      COMMISSION SCHEDULES.

REVISOR'S NOTE: This section formerly was Art. 48A, § 731.

In the introductory language of subsection (a) of this section, the former
phrase "[i]n general" is deleted as surplusage.

In subsection (a)(4) of this section, the term "reinsurer" is substituted for the
former term "insurer" for accuracy and consistency within this section.

In subsection (a)(5) of this section, the reference to the reinsurer's "prior"
written approval is added for clarity and to conform to language used in
subsection (a)(6) of this section.

In subsection (a)(8) of this section, the reference to a reinsurer "that transacts
business with the reinsurance manager" is added for clarity and to conform to
similar language used in § 8-519(b)(2) of this subtitle.

In the introductory language of subsection (b) of this section, the reference to
the contract "between the reinsurance manager and reinsurer" is substituted
for the former reference to the contract "with the reinsurer" for clarity.

The only other changes are in style.

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

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