Maryland § 8-518

§ 8-518.

    (a)    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 insurance producer to solicit, procure, or negotiate reinsurance contracts for a reinsurer without ensuring that the insurance producer is qualified under Title 10, Subtitle 1 of this article;

        (4)    may not take an action that would constitute a violation of § 27-503 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:

            (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)    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.