Section 375.1112

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 01 Jul 1992, see footnote   

  375.1112.  Definitions. — As used in sections 375.1110 to 375.1140, the following terms mean:

  (1)  "Actuary", a person who is a member in good standing of the American Academy of Actuaries;

  (2)  "Controlling person", any person, firm, association or corporation who directly or indirectly has the power to direct or cause to be directed, the management, control or activities of the reinsurance intermediary;

  (3)  "Director", the director of the department of commerce and insurance;

  (4)  "Insurer", any person, firm, association or corporation duly licensed in this state pursuant to the laws of this state as an insurer;

  (5)  "Licensed producer", an agent, broker or reinsurance intermediary licensed pursuant to the applicable laws of this state;

  (6)  "Qualified United States financial institution", an institution that:

  (a)  Is organized, or is licensed, under the laws of the United States or any state thereof;

  (b)  Is regulated, supervised and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and

  (c)  Has been determined by either the director, or the Securities Valuation Office of the National Association of Insurance Commissioners, to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of a financial institution whose letter of credit will be acceptable to the director;

  (7)  "Reinsurance intermediary", a reinsurance intermediary-broker or a reinsurance intermediary-manager, as these terms are defined in subdivisions (8) and (9) of this section;

  (8)  "Reinsurance intermediary-broker" or "RB", any person, other than an officer or employee of the ceding insurer, firm, association or corporation who solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer;

  (9)  "Reinsurance intermediary-manager" or "RM", any person, firm, association or corporation who has authority to bind or manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department or underwriting office, and acts as an agent for such reinsurer whether known as an RM, manager or other similar term.  The following persons shall not be considered an RM, with respect to such reinsurer, for the purposes of sections 375.1110 to 375.1140:

  (a)  An employee of the reinsurer;

  (b)  A United States manager of the United States branch of an alien reinsurer;

  (c)  An underwriting manager which, pursuant to contract, manages all the reinsurance operations of the reinsurer, is under common control with the reinsurer, subject to chapter 382, and whose compensation is not based on the volume of premiums written;

  (d)  The manager of a group, association, pool or organization of insurers which engages in joint underwriting or joint reinsurance and who is subject to examination by the insurance regulatory agency of the state in which the manager's principal business office is located;

  (10)  "Reinsurer", any person, firm, association or corporation duly licensed in this state pursuant to the laws of this state as an insurer with the authority to assume reinsurance;

  (11)  "To be in violation", the reinsurance intermediary, insurer or reinsurer for whom the reinsurance intermediary was acting failed to substantially comply with the provisions of sections 375.1110 to 375.1140.

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(L. 1991 H.B. 385, et al. § 38)

Effective 7-01-92