Section 8-519 - Duties of authorized insurer; prohibited acts; penalties.

§ 8-519. Duties of authorized insurer; prohibited acts; penalties.
 

(a)  Duty to obtain statements of financial condition of reinsurance broker.- An authorized insurer shall obtain annually a copy of statements of the financial condition of each reinsurance broker that transacts business with the authorized insurer. 

(b)  Prohibited acts.- An authorized insurer may not: 

(1) engage the services of a person to act as a reinsurance broker on its behalf unless the person has complied with this subtitle; or 

(2) employ an individual who also is employed by a reinsurance broker that transacts business with the authorized insurer, unless the reinsurance broker is under common control with the authorized insurer and is subject to Title 7 of this article. 

(c)  Penalties.- An authorized insurer that violates any provision of this subtitle is subject to the disciplinary and penalty provisions of §§ 4-113 and 4-114 of this article. 
 

[An. Code 1957, art. 48A, § 725; 1995, ch. 36.]