2006 Code of Virginia § 38.2-1348 - License requirements

38.2-1348. License requirements.

A. No insurer shall permit a person to act, and no person shall act, as areinsurance intermediary broker in this Commonwealth if the reinsuranceintermediary broker maintains an office either directly or as a member oremployee of a firm or association, or an officer, director or employee of acorporation:

1. In this Commonwealth, unless such reinsurance intermediary broker is alicensed reinsurance intermediary in this Commonwealth; or

2. In another state, unless such reinsurance intermediary broker is alicensed reinsurance intermediary in this Commonwealth or in another statehaving a law substantially similar to this law.

B. No insurer shall permit a person to act, and no person shall act, as areinsurance intermediary manager:

1. For a reinsurer domiciled in this Commonwealth, unless such reinsuranceintermediary manager is a licensed reinsurance intermediary in thisCommonwealth;

2. In this Commonwealth, if the reinsurance intermediary manager maintains anoffice either directly or as a member or employee of a firm or association,or an officer, director or employee of a corporation in this Commonwealth,unless such reinsurance intermediary manager is a licensed reinsuranceintermediary in this Commonwealth; or

3. In another state for an insurer not domiciled in this Commonwealth, unlesssuch reinsurance intermediary manager is a licensed reinsurance intermediaryin this Commonwealth or in another state having a law substantially similarto this law.

C. The Commission may require a reinsurance intermediary manager to:

1. Be bonded in a manner acceptable to the Commission for the protection ofthe reinsurer and to provide a certification or attestation that such bond isin effect as a prerequisite to license issuance or renewal; and

2. Maintain an errors and omissions policy that is acceptable to theCommission and to provide a certification or attestation that such policy isin effect as a prerequisite to license issuance or renewal.

D. The Commission may issue a reinsurance intermediary license to anyindividual or business entity who has complied with the requirements of thisarticle. Any such license issued to a business entity will authorize all themembers of such business entity and any designated officers, directors oremployees to act as reinsurance intermediaries under the license, and allsuch persons shall be named in the application and any supplements thereto.

E. Except where prohibited by state or federal law, by submitting anapplication for license, the applicant shall be deemed to have appointed theclerk of the Commission as the agent for service of process on the applicantin any action or proceeding arising in this Commonwealth out of or inconnection with the exercise of the license. Such appointment of the clerk ofthe Commission as agent for service of process shall be irrevocable duringthe period within which a cause of action against the applicant may arise outof transactions with respect to subjects of insurance in this Commonwealth.Service of process on the clerk of the Commission shall conform to theprovisions of Chapter 8 ( 38.2-800 et seq.) of this title. An applicant fora reinsurance intermediary license also shall furnish the clerk of theCommission with the name and address of a resident of this Commonwealth uponwhom notices or orders of the Commission or process affecting suchreinsurance intermediary may be served. Such licensee shall promptly notifythe clerk of the Commission in writing of every change in its designatedagent for service of process, and such change shall not become effectiveuntil acknowledged by the Commission.

F. The Commission may refuse to issue a reinsurance intermediary license,subject to the right of the applicant to demand a hearing on the application,if the Commission believes the applicant, any person named on theapplication, or any member, principal, officer or director of the applicant,is not trustworthy; that any controlling person of such applicant is nottrustworthy to act as a reinsurance intermediary; or that any of theforegoing has given cause for revocation or suspension of such license or hasfailed to comply with any prerequisite for the issuance of such license.

G. Residents of Virginia who are members of the Virginia State Bar whenacting in their professional capacity as such shall be exempt from therequirements of this section.

H. Any person seeking to be licensed as a reinsurance intermediary in thisCommonwealth shall apply for such license in a form acceptable to theCommission, and shall pay to the Commission a nonrefundable application feein an amount prescribed by the Commission. Such fee shall be not less than$500 and not more than $1,000. Every licensed reinsurance intermediary shallpay to the Commission a nonrefundable biennial renewal fee in an amountprescribed by the Commission. Such fee shall be not less than $500 and notmore than $1,000. Between May 1 and June 1 of the renewal year, each licensedreinsurance intermediary shall submit to the Commission a renewal applicationand fee in the manner and form prescribed by the Commission. All fees shallbe collected by the Commission and paid into the state treasury and placed tothe credit of the fund for the maintenance of the Bureau of Insurance asprovided in subsection B of 38.2-400. Each license and renewed licenseshall expire on June 30 of the appropriate year.

I. Any person seeking to be licensed as a reinsurance intermediary in thisCommonwealth shall observe and abide by the laws of this Commonwealth andsubmit with its license application the following:

1. A statement identifying its principal place of business, organizationalstructure, and other such information as the Commission may require to verifythat the reinsurance intermediary is qualified under the definition of thisarticle;

2. A copy of its plan of operations;

3. A copy of its current financial statement, which shall be certified by anindependent public accountant and in a form acceptable to the Commission; and

4. Such information or reports as may be required to verify its continuingqualification as a reinsurance intermediary.

(2001, c. 706.)