2005 Idaho Code - 41-5108 — PROHIBITED ACTS

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 51
                         REINSURANCE INTERMEDIARY ACT
    41-5108.  PROHIBITED ACTS. The RM shall not:
    (1)  Cede retrocessions on behalf of the reinsurer, except that the RM may
cede facultative retrocessions pursuant to obligatory facultative agreements
if the contract with the reinsurer contains reinsurance underwriting
guidelines for such retrocessions. Such guidelines shall include a list of
reinsurers with which such automatic agreements are in effect, and for each
such reinsurer, the coverages and amounts or percentages that may be
reinsured, and commission schedules.
    (2)  Commit the reinsurer to participate in reinsurance syndicates.
    (3)  Appoint any producer without assuring that the producer is lawfully
licensed to transact the type of reinsurance for which he is appointed.
    (4)  Without prior 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 one per cent (1%) of the reinsurer's
policyholder surplus as of December 31 of the last complete calendar year.
    (5)  Collect any payment from a retrocessionaire or commit the reinsurer
to any claim settlement with a retrocessionaire, without prior approval of the
reinsurer. If prior approval is given, a report must be promptly forwarded to
the reinsurer.
    (6)  Jointly employ an individual who is employed by the reinsurer unless
such RM is under common control with the reinsurer subject to chapter 38,
title 41, Idaho Code.
    (7)  Appoint a sub-RM.