                                 CODE OF VIRGINIA

PROHIBITED ACTS (§ 38.2-1353)

No insurer shall authorize its reinsurance intermediary manager to, and no
reinsurance intermediary manager shall:

1. 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.

2. Commit the reinsurer to participate in reinsurance syndicates.

3. Permit any agent or reinsurance intermediary to represent the reinsurer
without assuring that the agent or reinsurance intermediary is lawfully
licensed.

4. 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&#8217;s surplus to policyholders
as of December 31 of the last completed calendar year.

5. 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.

6. 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 (&#xA7; 38.2-1322 et seq.) of this chapter or Article 2 (&#xA7;
38.2-4230 et seq.) of Chapter 42 of this title.

7. Appoint a sub-reinsurance intermediary manager.

HISTORY: 2001, c. 706.