Definitions

As used in this chapter, the term: (1) ‘‘Actuary’’ means a person who is a member in good standing of the American Academy of Actuaries. (2) ‘‘Controlling person’’ means any person, firm, association, or corporation who directly or indirectly has the power to direct or cause to be directed the management, control, or activities of the reinsurance intermediary. (3) ‘‘Insurer’’ means any person, firm, association, or corporation duly licensed in this state pursuant to the applicable provisions of the insurance law as an insurer. (4) ‘‘Licensed producer’’ means an agent, broker, or reinsurance intermediary licensed pursuant to the applicable provision of this title. (5) ‘‘Qualified United States financial institution’’ means an institution that: (A) Is organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or any state thereof; (B) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and (C) Has been determined by either the Commissioner or the Securities Valuation Office of the National Association of Insurance Commissioners to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the Commissioner. (6) ‘‘Reinsurance intermediary’’ means a reinsurance intermediary broker or a reinsurance intermediary manager as these terms are defined in paragraphs (7) and (8) of this Code section. (7) ‘‘Reinsurance intermediary broker’’ or ‘‘broker’’ means any person, other than an officer or employee of the ceding insurer, firm, association, or corporation who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer. (8) ‘‘Reinsurance intermediary manager’’ or ‘‘manager’’ means any person, firm, association, or corporation who has authority to bind or manages all or part of the assumed reinsurance business of a 941 33-49-3 reinsurer, including the management of a separate division, department, or underwriting office, and acts as an agent for such reinsurer whether known as a reinsurance intermediary manager, manager, or other similar term. Notwithstanding the above, for the purposes of this chapter the following persons shall not be considered as reinsurance intermediary managers with respect to such reinsurer: (A) An employee of the reinsurer; (B) A United States manager of the United States branch of an alien reinsurer; (C) An underwriting manager which, pursuant to contract, manages all the reinsurance operations of the reinsurer, is under common control with the reinsurer, subject to Chapter 13 of this title, and whose compensation is not based on the volume of premiums written; or (D) The manager of a group, association, pool, or organization of insurers which engages in joint underwriting or joint reinsurance and who is subject to examination by the commissioner of insurance of the state in which the manager’s principal business office is located. (9) ‘‘Reinsurer’’ means any person, firm, association, or corporation duly licensed in this state pursuant to the applicable provisions of this title as an insurer with the authority to assume reinsurance. (10) ‘‘To be in violation’’ means that the reinsurance intermediary, insurer, or reinsurer for whom the reinsurance intermediary was acting failed to substantially comply with the provisions of this chapter. History. — Code 1981, § 33-49-2, enacted by Ga. L. 1991, p. 1424, § 8. 33-49-3. Brokers and managers required to be licensed producers; surety bond; errors and omissions policy; reinsurance intermediary license; exemption. (a) No person, firm, association, or corporation shall act as a broker in this state if the broker 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: (1) In this state, unless such broker is a licensed producer in this state; or (2) In another state, unless such broker is a licensed producer in this state or another state having a law substantially similar to this 942 33-49-3 chapter or unless such broker is licensed in this state as a nonresident reinsurance intermediary. (b) No person, firm, association, or corporation shall act as a manager: (1) For a reinsurer domiciled in this state, unless such manager is a licensed producer in this state; (2) In this state, if the 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 such manager is a licensed producer in this state; (3) In another state for a nondomestic insurer, unless such manager is a licensed producer in this state or another state having a law substantially similar to this chapter or such person is licensed in this state as a nonresident reinsurance intermediary. (c) The Commissioner may require a manager subject to subsection (b) of this Code section to: (1) File a bond in an amount from an insurer acceptable to the Commissioner for the protection of the reinsurer; and (2) Maintain an errors and omissions policy in an amount acceptable to the Commissioner. (d)(1) The Commissioner may issue a reinsurance intermediary license to any person, firm, association, or corporation who has complied with the requirements of this chapter. Any such license issued to a firm or association will authorize all the members of such firm or association and any designated employees to act as reinsurance intermediaries under the license, and all such authorized 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 thereof, to act as reinsurance intermediaries on behalf of such corporation, and all such authorized persons shall be named in the application and any supplements thereto. (2) If the applicant for a reinsurance intermediary license is a nonresident, such applicant, as a condition precedent to receiving or holding a license, shall designate the Commissioner as agent for service of process in the manner, and with the same legal effect, provided for by this chapter for designation of service of process upon unauthorized insurers; and also shall 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 such nonresident reinsurance intermediary may be served. Such licensee shall 943 33-49-4 promptly notify the Commissioner in writing of every change in its designated agent for service of process, and such change shall not become effective until acknowledged by the Commissioner. (e) The Commissioner may refuse to issue a reinsurance intermediary license if in his judgment the applicant; any person named on the application; any member, principal, officer, or director of the applicant; or any controlling person of such applicant is not trustworthy to act as a reinsurance intermediary or that any of the foregoing has given cause for revocation or suspension of such license or has failed to comply with any prerequisite for the issuance of such license. Upon written request therefor, the Commissioner will furnish a summary of the basis for refusal to issue a license, which document shall be privileged and not subject to Article 4 of Chapter 18 of Title 50, relating to the inspection of public records. (f ) Licensed attorneys at law of this state when acting in their professional capacity as such shall be exempt from this Code section. History. — Code 1981, § 33-49-3, enacted by Ga. L. 1991, p. 1424, § 8; Ga. L. 1996, p. 6, § 33. 33-49-4. Written authorization of relationship required; contents.