A manager for reinsurance shall not:
- 1. Except as otherwise provided in this section, cede retrocessions on behalf of the reinsurer. A manager for reinsurance may cede facultative retrocessions pursuant to facultative agreements if the contract with the reinsurer contains guidelines for underwriting the retrocessions. The guidelines must include a list of reinsurers with which automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.
- 2. Commit the reinsurer to participate in syndicates for reinsurance.
- 3. Appoint any producer without verifying that the producer is licensed to transact the type of reinsurance for which the producer is appointed.
- 4. Without approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or 1 percent of the policyholder’s surplus of the reinsurer as of December 31 of the last complete calendar year.
- 5. Collect any payment from a retrocessionaire or commit the reinsurer to any settlement of a claim with a retrocessionaire, without the approval of the reinsurer. If approval is given, the manager for reinsurance shall promptly forward a report to the reinsurer.
- 6. Employ a person who is employed by the reinsurer unless the manager for reinsurance is under common control with the reinsurer within the meaning of chapter 692C of NRS.
- 7. Appoint another person to act as a manager for reinsurance.
(Added to NRS by 1995, 1765; A 1997, 3022)