TITLE 41

INSURANCE

CHAPTER 51

REINSURANCE INTERMEDIARY ACT

41-5103.  Licensure. (1) No person, firm, association or corporation shall act as a RB in this state if the RB maintains an office either directly or as a member or employee of a firm or association, or an officer, director or employee of a corporation:

(a)  In this state, unless such RB is a licensed producer in this state; or

(b)  In another state, unless such RB is a licensed producer in this state or another state having a law substantially similar to this law or such RB is licensed in this state as a nonresident reinsurance intermediary.

(2)  No person, firm, association or corporation shall act as a RM:

(a)  For a reinsurer domiciled in this state, unless such RM is a licensed producer in this state;

(b)  In this state, if the RM maintains an office either directly or as a member or employee of a firm or association, or an officer, director or employee of a corporation in this state, unless such RM is a licensed producer in this state;

(c)  In another state for a nondomestic insurer, unless such RM is a licensed producer in this state or another state having a law substantially similar to this law or such person is licensed in this state as a nonresident reinsurance intermediary.

(3)  The director may require a RM 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)  (a) The director 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 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 persons shall be named in the application and any supplements thereto.

(b)  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 director as agent for service of process in the manner, and with the same legal effect, provided for in this title for designation of service of process upon unauthorized insurers, and shall also furnish the director with the name and address of a resident of this state upon whom notices or orders of the director or process affecting such nonresident reinsurance intermediary may be served. Such licensee shall promptly notify the director in writing of every change in its designated agent for service of process, and such change shall not become effective until acknowledged by the director.

(5)  The director may refuse to issue a reinsurance intermediary license if, in his judgment, the applicant, anyone named on the application, or any member, principal, officer or director of the applicant, is not trustworthy, or that 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 director will furnish a summary of the basis for refusal to issue a license, which document shall be privileged and exempt from disclosure pursuant to exemptions provided in chapter 1, title 74, Idaho Code.

(6)  Licensed attorneys at law of this state when acting in their professional capacity as such shall be exempt from the provisions of this section.

History:

[41-5103, added 1992, ch. 82, sec. 1, p. 250; am. 1999, ch. 30, sec. 12, p. 55; am. 2015, ch. 141, sec. 115, p. 464.]