NAC693A.730. Reinsurance by controlled insurer; contents of guidelines for underwriting.

Except as otherwise provided in this section, a controlling broker may negotiate for but shall not require a controlled insurer to reinsure business that the controlling broker places with the controlled insurer. The controlling broker may require the controlled insurer to enter into contracts for facultative reinsurance pursuant to obligatory facultative agreements if the written contract between the controlling broker and the controlled insurer contains guidelines for underwriting. If the reinsurance has been ceded and assumed, the guidelines for underwriting must include a list of reinsurers with whom obligatory facultative agreements are in effect, the coverages and amounts or percentages that may be reinsured and a schedule of commissions.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)