{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1353.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1353.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1353.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1353.html"}],"law_id":82758,"edition_id":1,"section_id":82758,"structure_id":14993,"section_number":"38.2-1353","catch_line":"Prohibited acts","history":"2001, c. 706.","full_text":"No insurer shall authorize its reinsurance intermediary manager to, and no reinsurance intermediary manager shall:\n\n1\n\nCede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract between the reinsurance intermediary manager and the reinsurer contains reinsurance underwriting guidelines for such retrocessions. Such guidelines shall include a list of reinsurers with which such automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.2\n\nCommit the reinsurer to participate in reinsurance syndicates.3\n\nPermit any agent or reinsurance intermediary to represent the reinsurer without assuring that the agent or reinsurance intermediary is lawfully licensed.4\n\nWithout prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer’s surplus to policyholders as of December 31 of the last completed calendar year.5\n\nCollect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire without prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to the reinsurer.6\n\nJointly employ an individual who is employed by the reinsurer unless such reinsurance manager is under common control with the reinsurer subject to Article 5 (§ 38.2-1322 et seq.) of this chapter or Article 2 (§ 38.2-4230 et seq.) of Chapter 42 of this title.7\n\nAppoint a sub-reinsurance intermediary manager.","order_by":null,"text":{"0":{"id":296684,"text":"No insurer shall authorize its reinsurance intermediary manager to, and no reinsurance intermediary manager shall:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":296685,"text":"Cede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract between the reinsurance intermediary manager and the reinsurer contains reinsurance underwriting guidelines for such retrocessions. Such guidelines shall include a list of reinsurers with which such automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":296686,"text":"Commit the reinsurer to participate in reinsurance syndicates.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":296687,"text":"Permit any agent or reinsurance intermediary to represent the reinsurer without assuring that the agent or reinsurance intermediary is lawfully licensed.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":296688,"text":"Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer’s surplus to policyholders as of December 31 of the last completed calendar year.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":296689,"text":"Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire without prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to the reinsurer.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":296690,"text":"Jointly employ an individual who is employed by the reinsurer unless such reinsurance manager is under common control with the reinsurer subject to Article 5 (§ 38.2-1322 et seq.) of this chapter or Article 2 (§ 38.2-4230 et seq.) of Chapter 42 of this title.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":296691,"text":"Appoint a sub-reinsurance intermediary manager.","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6"}},"ancestry":[{"id":14993,"edition_id":1,"name":"Licensing of Reinsurance Intermediaries","identifier":"8","label":"article","depth":3,"order_by":1,"parent_id":13289,"metadata":{},"date_created":"2026-06-26 03:51:22","date_modified":"2026-06-26 03:51:22","permalink":{"id":211811,"object_type":"structure","relational_id":14993,"identifier":"8","token":"38.2\/13\/8","url":"\/38.2\/13\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13289,"edition_id":1,"name":"Reports, Reserves and Examinations, Insurance Holding Companies, Reinsurance Intermediaries, and Managing General Agents","identifier":"13","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":211347,"object_type":"structure","relational_id":13289,"identifier":"13","token":"38.2\/13","url":"\/38.2\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":58348,"structure_id":14993,"section_number":"38.2-1347","catch_line":"Definitions","url":"\/38.2-1347\/","token":"38.2\/13\/8\/38.2-1347","metadata":false},{"id":73342,"structure_id":14993,"section_number":"38.2-1348","catch_line":"License requirements","url":"\/38.2-1348\/","token":"38.2\/13\/8\/38.2-1348","metadata":false},{"id":57200,"structure_id":14993,"section_number":"38.2-1349","catch_line":"Required contract provisions; reinsurance intermediary brokers","url":"\/38.2-1349\/","token":"38.2\/13\/8\/38.2-1349","metadata":false},{"id":75604,"structure_id":14993,"section_number":"38.2-1350","catch_line":"Books and records; reinsurance intermediary brokers","url":"\/38.2-1350\/","token":"38.2\/13\/8\/38.2-1350","metadata":false},{"id":65484,"structure_id":14993,"section_number":"38.2-1351","catch_line":"Duties of insurers utilizing the services of a reinsurance intermediary broker","url":"\/38.2-1351\/","token":"38.2\/13\/8\/38.2-1351","metadata":false},{"id":85577,"structure_id":14993,"section_number":"38.2-1352","catch_line":"Required contract provisions; reinsurance intermediary managers","url":"\/38.2-1352\/","token":"38.2\/13\/8\/38.2-1352","metadata":false},{"id":82758,"structure_id":14993,"section_number":"38.2-1353","catch_line":"Prohibited acts","url":"\/38.2-1353\/","token":"38.2\/13\/8\/38.2-1353","metadata":false},{"id":58188,"structure_id":14993,"section_number":"38.2-1354","catch_line":"Duties of reinsurers utilizing the services of a reinsurance intermediary manager","url":"\/38.2-1354\/","token":"38.2\/13\/8\/38.2-1354","metadata":false},{"id":87094,"structure_id":14993,"section_number":"38.2-1355","catch_line":"Examination authority","url":"\/38.2-1355\/","token":"38.2\/13\/8\/38.2-1355","metadata":false},{"id":59046,"structure_id":14993,"section_number":"38.2-1356","catch_line":"Penalties and liabilities; grounds for placing on probation, refusal to issue or renew, revocation, or suspension of license","url":"\/38.2-1356\/","token":"38.2\/13\/8\/38.2-1356","metadata":false},{"id":58156,"structure_id":14993,"section_number":"38.2-1357","catch_line":"Requirement to report to Commission","url":"\/38.2-1357\/","token":"38.2\/13\/8\/38.2-1357","metadata":false}],"previous_section":{"id":85577,"structure_id":14993,"section_number":"38.2-1352","catch_line":"Required contract provisions; reinsurance intermediary managers","url":"\/38.2-1352\/","token":"38.2\/13\/8\/38.2-1352","metadata":false},"next_section":{"id":58188,"structure_id":14993,"section_number":"38.2-1354","catch_line":"Duties of reinsurers utilizing the services of a reinsurance intermediary manager","url":"\/38.2-1354\/","token":"38.2\/13\/8\/38.2-1354","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1353\/","history_text":"

This law was first created in 2001. The record of its establishment is cataloged in chapter 706<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":58188,"section_number":"38.2-1354","catch_line":"Duties of reinsurers utilizing the services of a reinsurance intermediary manager","order_by":null,"url":"\/38.2-1354\/"},{"id":57894,"section_number":"38.2-1361","catch_line":"Duties of insurers utilizing managing general agents","order_by":null,"url":"\/38.2-1361\/"}],"refers_to":[{"id":66587,"section_number":"38.2-1322","catch_line":"Definitions","order_by":null,"url":"\/38.2-1322\/"},{"id":57275,"section_number":"38.2-4230","catch_line":"Definitions","order_by":null,"url":"\/38.2-4230\/"}],"permalink":{"id":211837,"object_type":"law","relational_id":82758,"identifier":"38.2-1353","token":"38.2\/13\/8\/38.2-1353","url":"\/38.2-1353\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1353\/","token":"38.2\/13\/8\/38.2-1353","dublin_core":{"Title":"Prohibited acts","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1353","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

No insurer<\/span> shall authorize its reinsurance intermediary manager<\/span> to, and no reinsurance intermediary manager<\/span> shall:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Cede retrocessions on behalf of the reinsurer<\/span>, except that the reinsurance intermediary manager<\/span> may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract<\/span> between the reinsurance intermediary manager<\/span> and the reinsurer<\/span> contains reinsurance underwriting guidelines for such retrocessions. Such guidelines shall include a list of reinsurers<\/span> with which such automatic agreements are in effect, and for each such reinsurer<\/span>, the coverages and amounts or percentages that may be reinsured, and commission<\/span> schedules<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Commit the reinsurer<\/span> to participate in reinsurance syndicates. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Permit any agent or reinsurance intermediary to represent the reinsurer<\/span> without assuring that the agent or reinsurance intermediary is lawfully licensed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Without prior approval of the reinsurer<\/span>, pay or commit the reinsurer<\/span> to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer<\/span> or one percent of the reinsurer<\/span>’s surplus to policyholders<\/span> as of December 31 of the last completed calendar year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Collect any payment from a retrocessionaire or commit the reinsurer<\/span> to any claim settlement<\/span> with a retrocessionaire without prior approval of the reinsurer<\/span>. If prior approval is given, a report must be promptly forwarded to the reinsurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Jointly employ an individual who is employed by the reinsurer<\/span> unless such reinsurance manager is under common control with the reinsurer<\/span> subject to Article 5 (§ 38.2-1322<\/a> et seq.) of this chapter or Article 2 (§ 38.2-4230<\/a> et seq.) of Chapter 42 of this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Appoint a sub-reinsurance intermediary manager<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROHIBITED ACTS (\u00a7 38.2-1353)\n\nNo insurer shall authorize its reinsurance intermediary manager to, and no\nreinsurance intermediary manager shall:\n\n1. Cede retrocessions on behalf of the reinsurer, except that the reinsurance\nintermediary manager may cede facultative retrocessions pursuant to obligatory\nfacultative agreements if the contract between the reinsurance intermediary\nmanager and the reinsurer contains reinsurance underwriting guidelines for such\nretrocessions. Such guidelines shall include a list of reinsurers with which\nsuch automatic agreements are in effect, and for each such reinsurer, the\ncoverages and amounts or percentages that may be reinsured, and commission\nschedules.\n\n2. Commit the reinsurer to participate in reinsurance syndicates.\n\n3. Permit any agent or reinsurance intermediary to represent the reinsurer\nwithout assuring that the agent or reinsurance intermediary is lawfully\nlicensed.\n\n4. Without prior approval of the reinsurer, pay or commit the reinsurer to pay a\nclaim, net of retrocessions, that exceeds the lesser of an amount specified by\nthe reinsurer or one percent of the reinsurer’s surplus to policyholders\nas of December 31 of the last completed calendar year.\n\n5. Collect any payment from a retrocessionaire or commit the reinsurer to any\nclaim settlement with a retrocessionaire without prior approval of the\nreinsurer. If prior approval is given, a report must be promptly forwarded to\nthe reinsurer.\n\n6. Jointly employ an individual who is employed by the reinsurer unless such\nreinsurance manager is under common control with the reinsurer subject to\nArticle 5 (§ 38.2-1322 et seq.) of this chapter or Article 2 (§\n38.2-4230 et seq.) of Chapter 42 of this title.\n\n7. Appoint a sub-reinsurance intermediary manager.\n\nHISTORY: 2001, c. 706.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}