2006 Louisiana Laws - RS 22:1210.21 — Definitions

§1210.21.  Definitions

As used in this Part:

(1)  "Actuary" shall mean a person who is a member in good standing of the American Academy of Actuaries.  

(2)  "Controlling person" shall mean 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)  "Insurer" shall mean any person, firm, association, or corporation duly licensed in this state, pursuant to the applicable provisions of the Louisiana Insurance Code, as an insurer.  

(4)  "Licensed producer" shall mean an agent, broker, or reinsurance intermediary licensed pursuant to the applicable provisions of the Louisiana Insurance Code.  

(5)  "Reinsurance intermediary" shall mean a reinsurance intermediary-broker or a reinsurance intermediary-manager as these terms are defined in Paragraphs (6) and (7) of this Section.  

(6)  "Reinsurance intermediary-broker" shall mean any person, other than an officer or employee of the ceding insurer, 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.

(7)  "Reinsurance intermediary-manager" shall mean 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 a reinsurance intermediary-manager, manager, or other similar term.  Notwithstanding the above, the following persons shall not be considered a reinsurance intermediary-manager, with respect to such reinsurer, for the purposes of this Part:

(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 the Insurance Holding Company System Regulatory Law, 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 engage in joint underwriting or joint reinsurance and who are subject to examination by the state in which the manager's principal business office is located.  

(8)  "Reinsurer" shall mean any person, firm, association, or corporation duly licensed in this state, pursuant to the applicable provisions of the Louisiana Insurance Code, as an insurer with the authority to assume reinsurance.  

(9)  "Qualified United States financial institutions" shall, for purposes of this Part, mean an institution that:

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

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

(c)  Has been determined by either the commissioner of insurance 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 financial institutions whose letters of credit will be acceptable to the commissioner.  

(10)  "To be in violation" shall mean that the reinsurance intermediary, insurer, or reinsurer for whom the reinsurance intermediary was acting failed to substantially comply with the provisions of this Part.  

Acts 1992, No. 811, §1.