44-5603. Reinsurance intermediary-broker; reinsurance intermediary-manager; license; requirements; issuance; director; duties; fee; renewal; exemption.

(1) No person, firm, association, or corporation shall 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 such reinsurance intermediary-broker is a licensed producer or reinsurance intermediary in this state; or

(b) In another state unless such reinsurance intermediary-broker is a licensed producer or reinsurance intermediary in this state or another state having a law substantially similar to the Reinsurance Intermediary Act or such reinsurance intermediary-broker is licensed in this state as a nonresident reinsurance intermediary.

(2) No person, firm, association, or corporation shall act as a reinsurance intermediary-manager:

(a) For a reinsurer domiciled in this state unless such reinsurance intermediary-manager is a licensed producer or reinsurance intermediary in this state; or

(b) In this state if the reinsurance intermediary-manager maintains an office directly, as a member or employee of a firm or association, or as an officer, director, or employee of a corporation in this state unless such reinsurance intermediary-manager is a licensed producer or reinsurance intermediary in this state.

(3) The director may require a resident reinsurance intermediary-manager subject to subsection (2) of this section to:

(a) File a bond in an amount from an insurer acceptable to the director for the protection of the reinsurer; and

(b) Maintain an errors and omissions policy in an amount acceptable to the director.

(4) The director may issue a reinsurance intermediary license to any person, firm, association, or corporation which has complied with the requirements of the Reinsurance Intermediary Act. Any such license issued to a firm or association shall authorize all the members of such firm or association and any designated employees to act as reinsurance intermediaries under the license, and all such persons shall be named in the application and any supplements thereto. Any such license issued to a corporation shall authorize all of the officers and any designated employees and directors to act as reinsurance intermediaries on behalf of such corporation, and all such persons shall be named in the application and any supplements thereto.

(5) The director may refuse to issue a reinsurance intermediary license if in his or her judgment he or she determines that the applicant, any person named on the application, or any member, principal, officer, or director of the applicant is not trustworthy, that any controlling person of such applicant is not trustworthy to act as a reinsurance intermediary, or that any of the foregoing have given cause for revocation or suspension of such license or have failed to comply with any prerequisite for the issuance of such license. Upon written request by the applicant, the director shall furnish to the applicant a summary of the basis for refusal to issue a license, which summary shall be privileged and not subject to public disclosure.

(6)(a) Applications for resident reinsurance intermediary licenses shall be made to the director on forms designated and furnished by the director and shall be accompanied by a license fee established by the director not to exceed two hundred fifty dollars. If the applicant is an individual, the application for the license shall also include the applicant's social security number.

(b) The director shall issue a nonresident reinsurance intermediary license if:

(i) The person is currently licensed as a resident reinsurance intermediary or insurance producer and is in good standing in his or her home state;

(ii) The person has submitted or transmitted to the director the application for licensure that the person submitted to his or her home state, or in lieu of that application, a completed application deemed appropriate by the director, accompanied by a license fee established by the director not to exceed two hundred fifty dollars; and

(iii) The person's home state awards nonresident licenses to residents of this state on the same basis.

(c) All reinsurance intermediary licenses shall expire on April 30 of each year. Reinsurance intermediary licenses may be renewed within the ninety-day period before their expiration dates. The director shall establish procedures for the renewal of reinsurance intermediary licenses. Every licensee shall notify the director within thirty days of any change in the licensee's business or residential address.

(7) Attorneys of this state acting in their professional capacity shall be exempt from this section.

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