2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-486.01 - Licensure of reinsurance intermediaries

20-486.01.
Licensure of reinsurance intermediaries
A. A person,  firm,  association or corporation shall not act as a reinsurance intermediary broker in this state unless:
1. With respect to a reinsurance intermediary broker who maintains an office in this state,  whether directly or as a member or employee of a firm or association or as an officer,  director or employee of a corporation,  the reinsurance intermediary broker is a licensed producer in this state.
2. With respect to a reinsurance intermediary broker who does not maintain an office in this state,  the reinsurance intermediary is a licensed producer in another state having a requirement that is substantially similar to this article or the reinsurance intermediary broker is licensed in this state as a nonresident reinsurance intermediary.
B. A person,  firm,  association or corporation shall not act as a reinsurance intermediary manager:
1. For a reinsurer domiciled in this state,  unless the reinsurance intermediary manager is a licensed producer in this state.
2. 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.
3. In another state for a nondomestic insurer,  unless the reinsurance intermediary manager is a licensed producer in this state or another state under a similar law of that state or the reinsurance intermediary manager is licensed in this state as a nonresident reinsurance intermediary.
C. The director may require a reinsurance intermediary manager to:
1. File a bond from an insurer for the protection of the reinsurer in an amount that is acceptable to the director.
2. Maintain an errors and omissions policy in an amount that is acceptable to the director.
D. The director may issue a reinsurance intermediary license to a person,  firm,  association or corporation that complies with the requirements of this article. A license that is issued to a firm or association authorizes all the members and designated employees of the firm or association to act as reinsurance intermediaries under the license. Members and designated employees shall be named in the application and any supplements to the application. A license that is issued to a corporation authorizes all of the officers,  designated employees and directors of the corporation to act as reinsurance intermediaries on behalf of the corporation. The officers,  designated employees and directors shall be named in the application and any supplements to the application. If the applicant for a reinsurance intermediary license is a nonresident,  as a condition precedent to receiving or holding a license the applicant shall designate the director as the agent for service of process pursuant to this article. The applicant shall furnish the director with the name and address of a resident of this state on whom may be served notice,  orders of the director or process affecting the nonresident reinsurance intermediary. The licensee shall notify promptly the director in writing of every change in its designated agent for service of process. The change does not become effective until it is acknowledged by the director.
E. The director may refuse to issue a reinsurance intermediary license if,  in the director's judgment,  the applicant,  a person named on the application or a member,  principal,  officer or director of the applicant or controlling person of the applicant gives cause for revocation or suspension of the license or fails to comply with any prerequisite for the issuance of the license. On written request,  the director shall furnish a summary of the basis for refusal to issue a license. The summary is privileged and confidential.
F. Attorneys licensed to practice law in this state are exempt from this section when acting in their professional capacity.
G. The director may exempt from this section a reinsurance intermediary broker whose activities with respect to reinsurance comply with all of the following:
1. Has no authorization to bind any party.
2. Compensation is not dependent on the sale or placement of reinsurance and the amount of compensation is not related to the amount of reinsurance or reinsurance premium.
3. Reinsurance related activities are infrequent and incidental to other professional services.
4. Does not handle or control the funds of any party directly or indirectly involved in the reinsurance activities of the reinsurance intermediary broker.