{"data":{"id":"us-md/md.-code-insurance-8-518","jurisdiction":"us-md","citation":"Md. Code, Insurance § 8–518","heading":"","body":"(a) A reinsurance manager:\n(1) except as provided in subsection (b) of this section, may not cede retrocessions for a reinsurer;\n(2) may not commit a reinsurer to participate in reinsurance syndicates;\n(3) may not appoint or hire an insurance producer to solicit, procure, or negotiate reinsurance contracts for a reinsurer without ensuring that the insurance producer is qualified under Title 10, Subtitle 1 of this article;\n(4) may not take an action that would constitute a violation of § 27-503 of this article if taken directly by a reinsurer;\n(5) without the reinsurer’s prior written approval, may not pay or commit a reinsurer to pay a claim, net of reinsurance, that exceeds the lesser of 1% of the reinsurer’s policyholder surplus as of the preceding calendar year and an amount specified by the reinsurer;\n(6) subject to subsection (b) of this section and without the reinsurer’s prior written approval:\n(i) may not collect a payment from a retrocessionaire; or\n(ii) may not commit a reinsurer to a claim settlement with a retrocessionaire;\n(7) may not appoint a subreinsurance manager; or\n(8) may not employ an individual who is also employed by a reinsurer that transacts business with the reinsurance manager, unless the reinsurance manager is under common control with the reinsurer and is subject to Title 7 of this article.\n(b) A reinsurance manager may cede facultative reinsurance contracts under obligatory facultative agreements if the contract between the reinsurance manager and reinsurer contains reinsurance underwriting guidelines for the retrocessions, including:\n(1) a list of reinsurers with which any automatic agreements are in effect;\n(2) the coverages and amounts or percentages that may be reinsured; and\n(3) commission schedules.","path":["Article - Insurance"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gin\u0026section=8-518","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:59:28Z","sha256":"12ea6ed07a9b1726f1f0375464cc18f5bf9e7f6f1e8ee135562120a2a54d625e","source_id":"us-md","stale":false,"prev":"us-md/md.-code-insurance-8-517","next":"us-md/md.-code-insurance-8-519"},"notice":"GroundRules: Original legal text. Not legal advice."}