Maryland Statutes
Subtitle 5 - Reinsurance Intermediaries
Section 8-518 - Restrictions on Activities of Reinsurance Manager

(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.