Ohio Administrative Code › Title 3901 - Department of Insurance › Chapter 3901-3 - Acquisitions and Mergers; Insurance Holding Company Systems › Section 3901-3-09 - Requirements for domestic insurers employing the services of reinsurance intermediaries

Current through all regulations passed and filed through July 1, 2024
(A) Purpose
The purpose of this rule is to establish minimum contractual
				terms between domestic insurers, domestic reinsurers and reinsurance
				intermediaries. This rule also establishes standards for business assumed by
				domestic reinsurers through reinsurance intermediaries as reported in their
				annual statement.
The rule also sets out the information reinsurers and reinsurance intermediaries must
				maintain for the purpose of examination under section
				3901.07 of the Revised Code as
				"documents of ...  other persons that
				are relevant to [an] examination."
(B) Authority
This rule is 
									promulgated pursuant to
				
									the
				authority vested in the superintendent under sections
									3901.041
									
									and
									3901.07
									of the Revised Code, and division (B) of section
				3901.77 of the Revised
				Code.
(C) Definitions
As used in this rule:
(1) "Insurer" means a person licensed to
			 operate or to do business in this state under Chapter 1751. of the Revised Code
			 or Title XXXIX of the Revised Code, who is domiciled in the state of
			 Ohio.
(2)
									
			 "Person" means a person, firm, association or corporation.
(3)
			 "Qualified United States Financial Institution" means an institution that meets
			 all of the following conditions:
(a) The
			 institution 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 of the United States;
(b) The
			 institution is regulated, supervised, and examined by authorities of the United
			 States or any state of the United States having regulatory authority over banks
			 and trust companies;
(c) The
			 institution has been determined by either the superintendent of insurance, or
			 the 
										"Securities Valuation Office of the National Association of
			 Insurance Commissioners" (NAIC), 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 superintendent.
(4) "Reinsurance
			 intermediary" means a reinsurance intermediary-broker or a reinsurance
			 intermediary-manager.
(5) "Reinsurance
			 intermediary-broker" means a person, other than an officer or employee of the
			 ceding insurer, that 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.
(6)
(a) "Reinsurance intermediary-manager" means
			 a person who has authority to bind or manages all or part of the assumed
			 reinsurance business of a reinsurer, including the management of a separate
			 division, department, or underwriting office; and acts as an agent for the
			 reinsurer whether known as a reinsurance intermediary-manager, manager or other
			 similar term.
(b) "Reinsurance
			 intermediary-manager" does not include any of the following:
(i) An employee of the reinsurer;
(ii) A United States manager of the United
			 States branch of an alien reinsurer;
(iii) An underwriting manager that, pursuant
			 to contract, manages all or part of the
			 reinsurance operations of the reinsurer, is under common control with the
			 reinsurer, subject to sections
			 3901.32 to
			 3901.37 of the Revised Code, and
			 whose compensation is not based on the volume of premiums written;
(iv) The manager of a group, association,
			 pool or organization of insurers that engages in joint underwriting or joint
			 reinsurance and that are subject to examination by the insurance regulatory
			 authority of the state in which the manager's principal business office is
			 located.
(7) "Reinsurer" means
			 a person licensed in this state pursuant to Title XXXIX of the Revised Code as
			 an insurer with the authority to assume reinsurance, who is domiciled in the
			 state of Ohio.