Section 19Part 3 — OBLIGATIONS OF LICENSEES
Regulation of agreements between insurance brokers and insurers
←→ Navigate · Click subsection badges to collapse · Press ? for help
Subject to subsection (2), an insurance broker shall not enter into a binding authority with an insurer other than a class D insurer.
The Authority may grant a dispensation for a fixed period to an insurance broker, despite the duty of the insurance broker to act for the prospective insured, to enter into a binding authority with an insurer if it is satisfied that the insurance broker needs, in terms of additional capacity, policy coverage, cost savings or otherwise, the binding authority to be permitted.
An application for a dispensation shall be in writing and shall be accompanied by such additional information as the Authority may require.
A dispensation granted under this section shall be subject to any conditions that the Authority sees fit, including restrictions to lines of business, specific contracts, types of client and requirements for disclosure and review at such intervals as the Authority may specify.
An unlicensed insurer with whom a broker can place insurance business pursuant to a dispensation granted under this section shall not by virtue of that fact be regarded as carrying on insurance business in or from within the Cayman Islands.