The reinsurance intermediary-manager shall not do any of the following: (

a) Directly or indirectly receive any compensation for the placement of retrocessions on behalf of the reinsurer. (

b) Bind any retrocession which would increase the contractual limit made available to the reinsurance intermediary-manager by the reinsurer. However, the reinsurance intermediary-manager may bind retrocessions which reduce or limit the commitments made on behalf of the reinsurer by the reinsurance intermediary-manager. The reinsurance intermediary-manager shall promptly inform the reinsurer of the terms, conditions, and retrocessionaires of such a retrocession arranged for its account. (

c) Commit the reinsurer to participate in reinsurance syndicates. (

d) Appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which he or she is appointed. (

e) 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 percent of the reinsurer’s policyholders’ surplus as of December of the last complete calendar year. (

f) 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. (

g) Jointly employ an individual who is employed by the reinsurer, unless the reinsurance intermediary-manager is under common control with the reinsurer that is subject to

Article 4.7 (commencing with

Section 1215) of

Chapter 2. (

h) Appoint a subreinsurance intermediary-manager.