Reinsurance Intermediaries

Wyo. Stat. Ann. tit. 26, ch. 47
in effect

Wyo. Stat. Ann. § 26-47-102 Definitions.

(a) As used in this article: (i) "Actuary" means a person who is a member in good standing of the American Academy of Actuaries; (ii) "Controlling person" means any person who directly or indirectly has the power to direct or cause to be directed, the management, control or activities of the reinsurance intermediary; (iii) "Licensed producer" means an agent, broker or reinsurance intermediary licensed pursuant to the applicable provisions of this code; (iv) "Qualified United States financial institution" means an institution that is organized or licensed under the laws of the United States or any state and is insured by an instrumentality of the United States government, and has been determined by either the insurance commissioner or the securities valuation office of the National Association of Insurance Commissioners to meet standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner; (v) "Reinsurance intermediary" means a reinsurance intermediary broker or a reinsurance intermediary manager; (vi) "Reinsurance intermediary broker" means any person, other than an officer or employee of the ceding insurer, who solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of the ceding insurer; (vii) "Reinsurance intermediary manager" means any person who has authority to bind or manage all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department or underwriting office, and who acts as an agent for the reinsurer whether known as a "reinsurance intermediary manager," "manager" or other similar term. The following persons shall not be considered a reinsurance intermediary manager, with respect to a reinsurer, for the purposes of this article: (A) An employee of the reinsurer; (B) A United States manager of the United States branch of an alien reinsurer; (C) An underwriting manager: (I) Which pursuant to contract, manages all the reinsurance operations of the reinsurer; (II) Is under common control with the reinsurer, subject to the Insurance Holding Company System Regulatory Act; and (III) Whose compensation is not based on the volume of premiums written. (D) The manager of a group, association, pool or organization of insurers which engage in joint underwriting or joint reinsurance and are subject to examination by the insurance commissioner of the state in which the manager's principal business office is located. (viii) "Reinsurer" means any person with the authority to assume reinsurance in this state as an insurer pursuant to the applicable provisions of this code; (ix) "To be in violation" means that the reinsurance intermediary, insurer or reinsurer for whom the reinsurance intermediary was acting failed to substantially comply with the provisions of this article.

Wyo. Stat. Ann. § 26-47-103 License required.

(a) No person shall act as a reinsurance intermediary broker in this state if he maintains an office either directly or as a member, officer, director or employee of a firm, association or corporation: (i) In this state, unless he is a licensed producer in this state; or (ii) In another state, unless he: (A) Is a licensed producer in this state or another state having a law substantially similar to this article; or (B) Is licensed in this state as a nonresident reinsurance intermediary. (b) No person shall act as a reinsurance intermediary manager: (i) For a reinsurer domiciled in this state, unless he is a licensed producer in this state; (ii) In this state, if he maintains an office either directly or as a member, officer, director or employee of a firm, association or corporation in this state, unless he is a licensed producer in this state; (iii) In another state for a nondomestic insurer, unless he: (A) Is a licensed producer in this state or another state having a law substantially similar to this article; or (B) He is licensed in this state as a nonresident reinsurance intermediary. (c) The commissioner may require a reinsurance intermediary manager subject to subsection (b) of this section to: (i) File a bond, in an amount and from an insurer acceptable to the commissioner, for the protection of each reinsurer; and (ii) Maintain an errors and omissions policy in an amount sufficient to protect each reinsurer. (d) The commissioner may issue a reinsurance intermediary license to any person who has complied with the requirements of this article. Any reinsurance intermediary license issued to a firm or association shall authorize all the members of the firm or association and any designated employees to act as reinsurance intermediaries under the license. Any intermediary license issued to a corporation shall authorize all of the officers, and any designated employees and directors thereof to act as reinsurance intermediaries on behalf of the corporation. All members of the firm, association or corporation and employees designated to act as reinsurance intermediaries shall be named in the application and any supplements to the application. (e) If the applicant for a reinsurance intermediary license is a nonresident, the applicant, as a condition precedent to receiving or holding a license, shall designate the commissioner as agent for service of process in the manner, and with the same legal effect, provided for by this code for designation of service of process upon unauthorized insurers. The applicant also shall furnish the commissioner with the name and address of a resident of this state upon whom notices or orders of the commissioner or process affecting the nonresident reinsurance intermediary may be served. The licensee shall promptly notify the commissioner in writing of every change in its designated agent for service of process which shall not become effective until acknowledged by the commissioner. (f) The commissioner shall not issue, continue or permit to exist any reinsurance intermediary license if the applicant, anyone named on the application, or any member, principal, officer or director of the applicant has: (i) Had a reinsurance intermediary license revoked or suspended; or (ii) Failed to comply with any prerequisite for the issuance of such license. (g) Any person applying for or holding a reinsurance intermediary license shall: (i) Have experience either as an agent, adjuster, managing general agent, broker, consultant or other special experience, education or training, all of sufficient content and duration reasonably necessary for competence in fulfilling the responsibilities of a reinsurance intermediary; and (ii) Be competent, trustworthy, financially responsible and of good reputation. (h) Licensed attorneys of this state when acting in their professional capacity as such shall be exempt from this section.

Wyo. Stat. Ann. § 26-47-104 Required contract provisions for reinsurance intermediary brokers.

(a) Transactions between a reinsurance intermediary broker and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall, at a minimum, provide that: (i) The insurer may terminate the reinsurance intermediary broker's authority at any time; (ii) The reinsurance intermediary broker shall render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing to, the reinsurance intermediary broker, and remit all funds due to the insurer within thirty (30) days of receipt; (iii) All funds collected for the insurer's account shall be held by the reinsurance intermediary broker in a fiduciary capacity in a bank which is a qualified United States financial institution; (iv) The reinsurance intermediary broker shall comply with W.S. 26-47-105; (v) The reinsurance intermediary broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks; (vi) The reinsurance intermediary broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.

Wyo. Stat. Ann. § 26-47-105 Books and records; reinsurance intermediary brokers.

(a) For at least ten (10) years after expiration of each contract of reinsurance transacted by the reinsurance intermediary broker, the reinsurance intermediary broker shall keep a complete record for each transaction showing: (i) The type of contract, limits, underwriting restrictions, classes or risks and territory; (ii) Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation; (iii) Reporting and settlement requirements of balances; (iv) Rates used to compute the reinsurance premium; (v) Names and addresses of assuming reinsurers; (vi) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary broker; (vii) Related correspondence and memoranda; (viii) Proof of placement; (ix) Details regarding retrocessions handled by the reinsurance intermediary broker including the identity of retrocessionaires and the percentage of each contract assumed or ceded; (x) Financial records, including but not limited to, premium and loss accounts; and (xi) When the reinsurance intermediary broker procures a reinsurance contract on behalf of a licensed ceding insurer: (A) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or (B) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the assuming reinsurer has delegated binding authority to the representative. (b) The insurer shall have access and the right to copy and audit all accounts and records maintained by the reinsurance intermediary broker related to its business in a form usable by the insurer.

Wyo. Stat. Ann. § 26-47-106 Duties of insurers utilizing the services of a reinsurance intermediary broker.

(a) An insurer shall not engage the services of any person to act as a reinsurance intermediary broker on its behalf unless the person is licensed as required by W.S. 26-47-103(a). (b) An insurer shall not employ an individual who is employed by a reinsurance intermediary broker with which it transacts business, unless the reinsurance intermediary broker is under common control with the insurer and subject to the Insurance Holding Company System Regulatory Act. (c) The insurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary broker with which it transacts business.

Wyo. Stat. Ann. § 26-47-107 Required contract provisions; reinsurance intermediary managers.

(a) Transactions between a reinsurance intermediary manager and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party, which shall be approved by the reinsurer's board of directors. At least forty-five (45) days before a reinsurer assumes or cedes business through a reinsurance intermediary manager, a true copy of the contract shall be filed with the commissioner for approval pursuant to W.S. 26-15-110(b) and 26-15-111. The contract shall, at a minimum, provide that: (i) The reinsurer may terminate the contract for cause upon written notice to the reinsurance intermediary manager. The reinsurer may immediately suspend the authority of the reinsurance intermediary manager to assume or cede business during the pendency of any dispute regarding the cause for termination; (ii) The reinsurance intermediary manager shall render accounts to the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing to, the reinsurance intermediary manager, and remit all funds due under the contract to the reinsurer on not less than a monthly basis; (iii) All funds collected for the reinsurer's account shall be held by the reinsurance intermediary manager in a fiduciary capacity in a bank which is a qualified United States financial institution. The reinsurance intermediary manager shall retain no more than three (3) months estimated claims payments and allocated loss adjustment expenses. The reinsurance intermediary manager shall maintain a separate bank account for each reinsurer that it represents; (iv) The reinsurance intermediary manager shall comply with W.S. 26-47-108; (v) The contract shall not be assigned in whole or in part by the reinsurance intermediary manager; (vi) The reinsurance intermediary manager shall comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection or cession of all risks; (vii) The rates, terms and purposes of commissions, charges and other fees which the reinsurance intermediary manager may levy against the reinsurer; (viii) If the contract permits the reinsurance intermediary manager to settle claims on behalf of the reinsurer: (A) All claims shall be reported to the reinsurer in a timely manner; (B) A copy of the claim file shall be sent to the reinsurer at its request or as soon as it becomes known that the claim: (I) Has the potential to exceed an amount determined by the commissioner or the limit set by the reinsurer whichever is less; (II) Involves a coverage dispute; (III) May exceed the reinsurance intermediary manager's claims settlement authority; (IV) Is open for more than six (6) months; or (V) Is closed by payment exceeding an amount set by the commissioner, or an amount set by the reinsurer, whichever is less. (C) All claim files shall be the joint property of the reinsurer and reinsurance intermediary manager. Upon an order of liquidation of the reinsurer the files shall become the sole property of the reinsurer or its estate. The reinsurance intermediary manager shall have reasonable access to and the right to copy the files on a timely basis; (D) Any settlement authority granted to the reinsurance intermediary manager may be terminated for cause upon the reinsurer's written notice to the reinsurance intermediary manager or upon the termination of the contract. The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination. (ix) If the contract provides for a sharing of interim profits by the reinsurance intermediary manager, the interim profits shall not be paid until: (A) The adequacy of reserves on remaining claims has been verified pursuant to W.S. 26-47-110(c); (B) For insurance business other than casualty insurance business, one (1) year after the end of each underwriting period; and (C) For casualty insurance business, five (5) years after the end of each underwriting period, or a later period set by the commissioner for specified lines of insurance. (x) The reinsurance intermediary manager shall annually provide the reinsurer with a statement of its financial condition prepared by an independent certified accountant; (xi) The reinsurer shall at least semiannually conduct an onsite review of the underwriting and claims processing operations of the reinsurance intermediary manager; (xii) The reinsurance intermediary manager shall disclose to the reinsurer any relationship it has with any insurer prior to ceding or assuming any business with the insurer pursuant to the contract; (xiii) Within the scope of its actual or apparent authority the acts of the reinsurance intermediary manager shall be deemed to be the acts of the reinsurer on whose behalf it is acting.

Wyo. Stat. Ann. § 26-47-108 Books and records; reinsurance intermediary managers.

(a) For at least ten (10) years after expiration of each contract of reinsurance transacted by the reinsurance intermediary manager, the reinsurance intermediary manager shall keep a complete record for each transaction showing: (i) The type of contract, limits, underwriting restrictions, classes or risks and territory; (ii) Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation and disposition of outstanding reserves on covered risks; (iii) Reporting and settlement requirements of balances; (iv) Rates used to compute the reinsurance premium; (v) Names and addresses of reinsurers; (vi) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary manager; (vii) Related correspondence and memoranda; (viii) Proof of placement; (ix) Details regarding retrocessions handled by the reinsurance intermediary manager, as permitted by W.S. 26-47-110(d), including the identity of retrocessionaires and percentage of each contract assumed or ceded; (x) Financial records, including but not limited to, premium and loss accounts; and (xi) When the reinsurance intermediary manager places a reinsurance contract on behalf of a ceding insurer: (A) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or (B) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative. (b) The reinsurer shall have access and the right to copy all accounts and records maintained by the reinsurance intermediary manager related to its business in a form usable by the reinsurer.

Wyo. Stat. Ann. § 26-47-109 Prohibited acts.

(a) The reinsurance intermediary manager shall not: (i) Cede retrocessions on behalf of the reinsurer; (ii) Commit the reinsurer to participate in reinsurance syndicates; (iii) Appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which he is appointed; (iv) 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 (1%) of the reinsurer's surplus as regards policyholders as of December 31 of the last complete calendar year; (v) 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 on the payment or the claim settlement shall be promptly forwarded to the reinsurer; (vi) Jointly employ an individual who is employed by the reinsurer unless the reinsurance intermediary manager is under common control with the reinsurer subject to the Insurance Holding Company Regulatory System Act; (vii) Appoint a subreinsurance intermediary manager.

Wyo. Stat. Ann. § 26-47-110 Duties of reinsurers utilizing the services of a reinsurance intermediary manager.

(a) A reinsurer shall not engage the services of any person to act as a reinsurance intermediary manager on its behalf unless the person is licensed as required by W.S. 26-47-103(b). (b) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary manager which the reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the commissioner. (c) If a reinsurance intermediary manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an independent 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) 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. (e) Within thirty (30) days of termination of a contract with a reinsurance intermediary manager, the reinsurer shall provide written notification of the termination to the commissioner. (f) 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 the Insurance Holding Company Regulatory System Act or, if applicable, the Broker Controlled Insurer Act.

Wyo. Stat. Ann. § 26-47-111 Examination authority.

A reinsurance intermediary shall be subject to examination by the commissioner pursuant to chapter 2 of the Wyoming Insurance Code. The commissioner shall have access to all books, bank accounts and records of the reinsurance intermediary in a form usable to the commissioner.

Wyo. Stat. Ann. § 26-47-112 Penalties and liabilities.

(a) A reinsurance intermediary, insurer or reinsurer found by the commissioner to be in violation of any provision of this article, after a hearing conducted in accordance with W.S. 26-2-125 shall: (i) For each separate violation, pay a penalty in an amount not to exceed five thousand dollars ($5,000.00); (ii) Be subject to revocation or suspension of its license; and (iii) If a violation was committed by the reinsurance intermediary, the reinsurance intermediary shall make restitution to the insurer, reinsurer, rehabilitator or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to the violation. (b) Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided in this code. (c) Nothing contained in this article is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, creditors or other third parties.

Wyo. Stat. Ann. § 26-47-113 Fees; rules and regulations.

(a) The commissioner may impose a biennial fee not to exceed one hundred dollars ($100.00) upon any reinsurance intermediary subject to the provisions of this article. The fee shall be in addition to any other fees provided in this code. (b) The commissioner may adopt reasonable rules and regulations for the implementation and administration of the provisions of this article.
Source: WY Statutes (Official Site)URL: https://wyoleg.gov/statutes/compress/title26.pdfFetched: 10/4/2026

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