{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1354.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1354.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1354.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1354.html"}],"law_id":58188,"edition_id":1,"section_id":58188,"structure_id":14993,"section_number":"38.2-1354","catch_line":"Duties of reinsurers utilizing the services of a reinsurance intermediary manager","history":"2001, c. 706.","full_text":"A\n\nA reinsurer shall not engage the services of any individual or business entity to act as a reinsurance intermediary manager on its behalf unless such individual or business entity is licensed as required by § 38.2-1348.B\n\nThe reinsurer shall annually obtain a copy of the current financial statement of each reinsurance intermediary manager that such reinsurer has engaged. Such statements shall be prepared by an independent certified accountant in a form acceptable to the Commission.C\n\nIf a reinsurance intermediary manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary manager. This opinion shall be in addition to any other required loss reserve certification.D\n\nBinding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the reinsurance intermediary manager.E\n\nWithin thirty calendar days of termination of a contract with a reinsurance intermediary manager, the reinsurer shall provide written notification of such termination in a form acceptable to the Commission.F\n\nA reinsurer shall not appoint to its board of directors, any officer, director, employee, controlling shareholder or subproducer of its reinsurance intermediary manager. This subsection shall not apply to relationships governed by Article 5 (§ 38.2-1322 et seq.) of this chapter or Article 2 (§ 38.2-4230 et seq.) of Chapter 42 of this title.G\n\nAn insurer shall not delegate to any person, other than one of its officers, the authority to enter into or bind any reinsurance agreement by which the insurer agrees to cede or retrocede any risk to a reinsurer, except that an insurer may delegate the specific authority to bind facultative reinsurance contracts by placing individual risks pursuant to the provisions of subdivision 1 of \u00a7 38.2-1353 or subdivision 10 of \u00a7 38.2-1360.1\n\nThe officer shall be a regular salaried employee of such insurer and shall not be affiliated with the reinsurance intermediary.2\n\nThe insurer is not prohibited by the provisions of this subsection from delegating the authority to enter into or bind an agreement to assume a risk to a licensed reinsurance intermediary manager pursuant to the provisions of this article, provided the authority to cede and assume a given risk is not simultaneously vested in the same intermediary.","order_by":null,"text":{"0":{"id":213226,"text":"A reinsurer shall not engage the services of any individual or business entity to act as a reinsurance intermediary manager on its behalf unless such individual or business entity is licensed as required by § 38.2-1348.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":213227,"text":"The reinsurer shall annually obtain a copy of the current financial statement of each reinsurance intermediary manager that such reinsurer has engaged. Such statements shall be prepared by an independent certified accountant in a form acceptable to the Commission.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":213228,"text":"If a reinsurance intermediary manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary manager. This opinion shall be in addition to any other required loss reserve certification.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":213229,"text":"Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the reinsurance intermediary manager.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":213230,"text":"Within thirty calendar days of termination of a contract with a reinsurance intermediary manager, the reinsurer shall provide written notification of such termination in a form acceptable to the Commission.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":213231,"text":"A reinsurer shall not appoint to its board of directors, any officer, director, employee, controlling shareholder or subproducer of its reinsurance intermediary manager. This subsection shall not apply to relationships governed by 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":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":213232,"text":"An insurer shall not delegate to any person, other than one of its officers, the authority to enter into or bind any reinsurance agreement by which the insurer agrees to cede or retrocede any risk to a reinsurer, except that an insurer may delegate the specific authority to bind facultative reinsurance contracts by placing individual risks pursuant to the provisions of subdivision 1 of \u00a7 38.2-1353 or subdivision 10 of \u00a7 38.2-1360.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"G1"},"7":{"id":213233,"text":"The officer shall be a regular salaried employee of such insurer and shall not be affiliated with the reinsurance intermediary.","type":"section","prefixes":["G","1"],"prefix":"1","entire_prefix":"G1","prefix_anchor":"G1","level":2,"prior_prefix":"G","next_prefix":"G2"},"8":{"id":213234,"text":"The insurer is not prohibited by the provisions of this subsection from delegating the authority to enter into or bind an agreement to assume a risk to a licensed reinsurance intermediary manager pursuant to the provisions of this article, provided the authority to cede and assume a given risk is not simultaneously vested in the same intermediary.","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G1"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1354\/","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":85577,"section_number":"38.2-1352","catch_line":"Required contract provisions; reinsurance intermediary managers","order_by":null,"url":"\/38.2-1352\/"}],"refers_to":[{"id":66587,"section_number":"38.2-1322","catch_line":"Definitions","order_by":null,"url":"\/38.2-1322\/"},{"id":82758,"section_number":"38.2-1353","catch_line":"Prohibited acts","order_by":null,"url":"\/38.2-1353\/"},{"id":57275,"section_number":"38.2-4230","catch_line":"Definitions","order_by":null,"url":"\/38.2-4230\/"}],"permalink":{"id":211841,"object_type":"law","relational_id":58188,"identifier":"38.2-1354","token":"38.2\/13\/8\/38.2-1354","url":"\/38.2-1354\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1354\/","token":"38.2\/13\/8\/38.2-1354","dublin_core":{"Title":"Duties of reinsurers utilizing the services of a reinsurance intermediary manager","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1354","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A reinsurer<\/span> shall not engage the services of any individual or business entity<\/span> to act as a reinsurance intermediary manager<\/span> on its behalf unless such individual or business entity<\/span> is licensed as required by § 38.2-1348<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The reinsurer<\/span> shall annually obtain a copy of the current financial statement of each reinsurance intermediary manager<\/span> that such reinsurer<\/span> has engaged. Such statements shall be prepared by an independent certified accountant in a form acceptable to the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If a reinsurance intermediary manager<\/span> establishes loss reserves, the reinsurer<\/span> shall annually obtain the opinion<\/span> of an actuary<\/span> attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary manager<\/span>. This opinion<\/span> shall be in addition to any other required loss reserve certification. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Binding authority for all retrocessional contracts<\/span> or participation in reinsurance syndicates shall rest with an officer of the reinsurer<\/span> who shall not be affiliated with the reinsurance intermediary manager<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Within thirty calendar days of termination of a contract<\/span> with a reinsurance intermediary manager<\/span>, the reinsurer<\/span> shall provide written notification of such termination in a form acceptable to the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> A reinsurer<\/span> shall not appoint to its board of directors, any officer, director, employee, controlling shareholder or subproducer of its reinsurance intermediary manager<\/span>. This subsection shall not apply to relationships governed by 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

G.<\/span> An insurer<\/span> shall not delegate to any person<\/span>, other than one of its officers, the authority to enter into or bind any reinsurance agreement by which the insurer<\/span> agrees to cede or retrocede any risk to a reinsurer<\/span>, except that an insurer<\/span> may delegate the specific authority to bind facultative reinsurance contracts<\/span> by placing individual risks pursuant to the provisions of subdivision 1 of \u00a7 38.2-1353<\/a> or subdivision 10 of \u00a7 38.2-1360<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The officer shall be a regular salaried employee of such insurer<\/span> and shall not be affiliated with the reinsurance intermediary. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The insurer<\/span> is not prohibited by the provisions of this subsection from delegating the authority to enter into or bind an agreement to assume a risk to a licensed reinsurance intermediary<\/span> manager pursuant to the provisions of this article, provided the authority to cede and assume a given risk is not simultaneously vested in the same intermediary. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDUTIES OF REINSURERS UTILIZING THE SERVICES OF A REINSURANCE INTERMEDIARY\nMANAGER (\u00a7 38.2-1354)\n\nA. A reinsurer shall not engage the services of any individual or business\nentity to act as a reinsurance intermediary manager on its behalf unless such\nindividual or business entity is licensed as required by § 38.2-1348.\n\nB. The reinsurer shall annually obtain a copy of the current financial statement\nof each reinsurance intermediary manager that such reinsurer has engaged. Such\nstatements shall be prepared by an independent certified accountant in a form\nacceptable to the Commission.\n\nC. If a reinsurance intermediary manager establishes loss reserves, the\nreinsurer shall annually obtain the opinion of an actuary attesting to the\nadequacy of loss reserves established for losses incurred and outstanding on\nbusiness produced by the reinsurance intermediary manager. This opinion shall be\nin addition to any other required loss reserve certification.\n\nD. Binding authority for all retrocessional contracts or participation in\nreinsurance syndicates shall rest with an officer of the reinsurer who shall not\nbe affiliated with the reinsurance intermediary manager.\n\nE. Within thirty calendar days of termination of a contract with a reinsurance\nintermediary manager, the reinsurer shall provide written notification of such\ntermination in a form acceptable to the Commission.\n\nF. A reinsurer shall not appoint to its board of directors, any officer,\ndirector, employee, controlling shareholder or subproducer of its reinsurance\nintermediary manager. This subsection shall not apply to relationships governed\nby Article 5 (§ 38.2-1322 et seq.) of this chapter or Article 2 (§\n38.2-4230 et seq.) of Chapter 42 of this title.\n\nG. An insurer shall not delegate to any person, other than one of its officers,\nthe authority to enter into or bind any reinsurance agreement by which the\ninsurer agrees to cede or retrocede any risk to a reinsurer, except that an\ninsurer may delegate the specific authority to bind facultative reinsurance\ncontracts by placing individual risks pursuant to the provisions of subdivision\n1 of \u00a7 38.2-1353 or subdivision 10 of \u00a7 38.2-1360.\n\n 1. The officer shall be a regular salaried employee of such insurer and shall\n not be affiliated with the reinsurance intermediary.\n\n 2. The insurer is not prohibited by the provisions of this subsection from\n delegating the authority to enter into or bind an agreement to assume a risk\n to a licensed reinsurance intermediary manager pursuant to the provisions of\n this article, provided the authority to cede and assume a given risk is not\n simultaneously vested in the same intermediary.\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}}