33-2-1701. Licensure of reinsurance intermediaries. (1) A person, firm, association, or corporation may not act as a reinsurance intermediary-broker in this state if the reinsurance intermediary-broker maintains an office directly, as a member or employee of a firm or association, or as an officer, director, or employee of a corporation:
     (a) in this state, unless the reinsurance intermediary-broker is a licensed producer in this state; or
     (b) in another state, unless the reinsurance intermediary-broker is a licensed producer in this state or another state that has a law substantially similar to this law or unless the reinsurance intermediary-broker is licensed in this state as a nonresident reinsurance intermediary.
     (2) A person, firm, association, or corporation may not act as a reinsurance intermediary-manager:
     (a) for a reinsurer domiciled in this state, unless the reinsurance intermediary-manager is a licensed producer in this state;
     (b) in this state, if the reinsurance intermediary-manager maintains an office either directly or as a member or employee of a firm or association or as an officer, director, or employee of a corporation in this state, unless the reinsurance intermediary-manager is a licensed producer in this state; or
     (c) in another state for a nondomestic insurer, unless the reinsurance intermediary-manager is a licensed producer in this state or another state that has a law substantially similar to this law or unless the person is licensed in this state as a nonresident insurance intermediary.
     (3) Subject to subsection (2), the commissioner may require a reinsurance intermediary-manager to:
     (a) file a bond in an amount from an insurer acceptable to the commissioner for the protection of the reinsurer; and
     (b) maintain a policy on errors and omissions in an amount acceptable to the commissioner.
     (4) (a) The commissioner may issue a reinsurance intermediary license to any person, firm, association, or corporation that has complied with the requirements of this part. A license issued to a firm or association authorizes all the members of the firm or association and any designated employees to act as reinsurance intermediaries under the license. All authorized persons must be named in the application and in any supplements to the application. A license issued to a corporation must authorize all of the officers and any designated employees and directors to act as reinsurance intermediaries on behalf of the corporation. All authorized persons must be named in the application and in any supplements to the application.
     (b) If the applicant for a reinsurance intermediary license is a nonresident, the applicant, as a condition precedent to receiving or holding a license, shall designate the commissioner as the agent for service of process in the manner provided for by this title for designation of service of process upon unauthorized insurers. The applicant shall also furnish the commissioner with the name and address of a resident of this state upon whom notices or orders of the commissioner or process affecting the nonresident reinsurance intermediary may be served. The licensee shall promptly notify the commissioner in writing of each change in its designated agent for service of process, and the change may not become effective until acknowledged by the commissioner.
     (5) (a) The commissioner may refuse to issue a reinsurance intermediary license if, in the commissioner's judgment:
     (i) the applicant, a person named on the application, or a member, principal, officer, or director of the applicant is not trustworthy;
     (ii) a controlling person of the applicant is not trustworthy to act as a reinsurance intermediary; or
     (iii) any of the persons listed in subsection (5)(a)(i) or (5)(a)(ii) has given cause for revocation or suspension of the license or has failed to comply with any prerequisite for the issuance of the license.
     (b) Upon written request, the commissioner shall furnish a summary of the basis for refusal to issue a license.
     (6) Licensed attorneys of this state, when acting in their professional capacity, are exempt from this section.

     History: En. Sec. 19, Ch. 596, L. 1993; amd. Sec. 8, Ch. 416, L. 1999.