(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 surer 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.
Maryland Legal Code