KRS 304.9-730: Certain actions by reinsurance intermediary managers prohibited.

The reinsurance intermediary manager shall not:

(1) Bind retrocessions on behalf of the reinsurer, except that the reinsurance

intermediary manager may bind facultative retrocessions pursuant to obligatory

facultative agreements if the contract with the re insurer contains reinsurance

underwriting guidelines for those retrocessions. The guidelines shall include a list of

reinsurers with which automatic agreements are in effect, and for each reinsurer, the

coverages and amounts or percentages that may be rein sured, and the 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 percent (1%) of the reinsurer's policyholder's 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 shall be promptly forwarded to the reinsurer;

(6) Jointly employ an individual who is employed by the reinsurer; or

(7) Appoint a subreinsurance intermediary manager.