Licensing Requirements: Corporate Reinsurance Intermediary Broker

Licensing Requirements: Corporate Reinsurance Intermediary Broker

The laws relative to the licensing of Reinsurance Intermediaries are M.G.L. c. 175 § 177M § 177O.

Corporate Reinsurance Intermediary Broker License

If a corporation is acting as a reinsurance intermediary broker in Massachusetts and maintains an office in Massachusetts, it must be licensed as a corporate resident reinsurance intermediary broker. If a corporation is acting as a reinsurance intermediary broker in Massachusetts and maintains an office in another state, it must be licensed as a nonresident reinsurance intermediary broker.

The corporate reinsurance intermediary broker license will expire one year from the date of issue unless it is sooner revoked or suspended. Massachusetts does not allow exemptions to licensing under the reinsurance intermediary licensing law. If you are doing business in Massachusetts, you must be licensed as a reinsurance intermediary. Pursuant to M.G.L. c. 175 § 177s, a reinsurance intermediary manager shall represent a reinsurer only pursuant to a written contract which shall be approved by the reinsurers board of directors. At least thirty (30) days before such reinsurer assumes or cedes business through the reinsurance intermediary manager, a true copy of the contract shall be filed with the Commissioner. The contract must contain, at a minimum, the provisions consistent with those set forth in M.G.L. c. 175 § 177O (a) through (n). Contracts must be filed with the Producer Licensing Department, Division of Insurance, 1000 Washington St, Boston, MA 02118.

Questions may be directed to the Producer Licensing Department at [phone].

Corporate Resident Reinsurance Intermediary Broker Licensee

In order to obtain a corporate resident reinsurance intermediary broker license, each individual authorized to act as a reinsurance intermediary broker on the corporate license must have been licensed as an insurance producer for the lines for which he/she intends to transact business on behalf of the corporation for a period of at least three years prior to applying for the license. Each individual authorized to act as a reinsurance intermediary broker on the corporate license must maintain an insurance producer license in the lines he/she transacts business in order to act on behalf of the corporation as a reinsurance intermediary broker. An individual may satisfy these requirements by showing that he/she has been either individually licensed as an insurance producer or has been authorized to solicit business on behalf of a corporate insurance producer. The following must be submitted in order for a corporate resident reinsurance intermediary broker application to be reviewed: A completed application form for each person who will be authorized to transact business on behalf of the corporation; Certified copies of the Articles of Organization; A Certificate of Existence from the Secretary of State; and A check made payable to the Commonwealth of Massachusetts, Division of Insurance, in the amount of $66.66 per officer, director or employee. Please note the fee is non-refundable. If a new corporation is being formed, Articles of Organization or a Foreign Corporate Certificate must be submitted to the Division of Insurance, Producer Licensing Department, for prior name approval before they can be filed with the Secretary of State. Blank Articles of Organization may be obtained from the Secretary of State's Corporate Division's website at http://www.sec.state.ma.us/cor/coridx.htm at One Ashburton Place, Boston, MA 02108. [phone]. In order to receive Division approval, the proposed name of the corporation must be businesslike and may not be the same as or so similar to another corporation as to be mistaken for it. If an existing corporation is applying for a license, certified copies of the Articles of Organization and a Certificate of Existence from the Secretary of State must be submitted to the Division with the application(s). Once these documents are obtained the Division will review the application. The Division's Producer Licensing Department will verify only those officers, directors and employees who are authorized to act as reinsurance intermediary brokers on the business entity license have been licensed for at least three years as insurance producers, and that upon renewal, only these particular officers, directors and employees continue to hold insurance producer licenses in the lines of authority for which they intent to transact business as a reinsurance intermediary broker in the business entity's name.

Corporate Nonresident Reinsurance Intermediary Broker Licensee

The following must be submitted in order for a corporate nonresident reinsurance intermediary application to be reviewed: A completed application form for each person who will be authorized to transact business on behalf of the corporation; A Certificate of Good Standing from the corporation's home state indicating that such corporation is licensed in good standing as a reinsurance intermediary broker; A Certificate of Good Standing must be submitted for each individual who will be authorized to transact business on behalf of the corporation which indicates that such individual is licensed in good standing as reinsurance intermediary broker in his/her home state; A certified copy of a Foreign Corporate Certificate from the Massachusetts Secretary of State; Certified Copies of the home state Articles of Incorporation; and A check made payable to the Commonwealth of Massachusetts, Division of Insurance, in the amount of $66.66 per officer, director or employee. Please note the fee is non-refundable.