Wisconsin law defines a reinsurance intermediary-broker as a person who places ceded reinsurance in this state and has an office, or does business in this state and has an office outside this state unless it is licensed under a similar law in another state.

A reinsurance intermediary-manager has significant authority regarding assumed reinsurance of an insurer including the authority to bind, manage a separate division, department, or underwriting office with responsibility for, or manages all or part of, assumed reinsurance business of a reinsurer, and acts as an agent for the reinsurer.

Reinsurance intermediary firms are required to hold a license. Individuals are not required to be licensed if they are included under the license of a reinsurance intermediary firm.

Reinsurance intermediaries are required to obtain authorization or enter into a contract which must meet the following standards: 1) the insurer may terminate a reinsurance intermediary-broker at any time without cause or a manager for cause; 2) financial reporting, recordkeeping, and examination requirements; 3) standards for handling funds; 4) disclosure requirements; 5) underwriting standards; 6) claim reporting and settlement standards; and 7) limits on profit sharing.

Requirements for Licensing

Reinsurance Intermediary-Manager

A reinsurance intermediary-MANAGER is defined in s. 47.01 (8), Wis. Stat. Licensing is required if you meet any of the following criteria:

• Act as a manager for a domestic reinsurer, or
• Act as a manager for a Wisconsin-licensed nondomestic insurer and maintain an office in Wisconsin, or
• Act as a manager in another state for a nondomestic insurer which is licensed in Wisconsin.

If you meet any of the definitions above and you are a NONRESIDENT holding a license in another state with a similar rule, you would be exempt from Wisconsin's licensing requirements.

Reinsurance Intermediary-Broker

A reinsurance intermediary-BROKER is defined in s. 47.02 (1) (a), Wis. Stat. Licensing is required if you meet any of the following criteria:

• Act as a broker in Wisconsin, or
• Act as a broker and maintain an office in Wisconsin.

Again, if you meet any of the definitions above and you are a NONRESIDENT holding a license in another state with a similar rule, you would be exempt from Wisconsin's licensing requirements.

States/Jurisdictions With Laws Similar to Wisconsin

Prohibited Conduct and Duties of Insurers

An insurer is required to obtain an annual financial statement from a reinsurance intermediary, may not share its employes, and may not authorize the broker to bind ceded reinsurance.

A reinsurance intermediary-broker or manager is prohibited from binding ceded retrocession reinsurance on behalf of an insurer except under very limited circumstances. Reinsurers are required to obtain annual financial statements prepared by a CPA firm of their reinsurance intermediary-managers and report termination of contracts to the Commissioner, and are prohibited from appointing individuals associated with the manager to their boards.

Use Business Entity Insurance License Application, OCI 11-050, or Reinsurance Intermediary License Application, Resident, OCI 11-034.

OCI 11-050 Business Entity Insurance License Application  Fillable p d f
OCI 11-034 Reinsurance Intermediary Broker License Application, Resident/Nonresident
OCI 11-043 Reinsurance Intermediary Manager License Application, Resident/Nonresident