Brokers: Transactions with insurer; termination; duties.
1. A transaction between a broker for reinsurance and the insurer he represents may only be entered into by written agreement. The agreement must specify the responsibilities of each party.
2. The insurer may terminate the authority of the broker for reinsurance at any time.
3. The broker for reinsurance shall:
(a) 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 broker for reinsurance; and
(b) Remit all money due to the insurer within 30 days after receipt.
4. All money collected for the account of the insurer must be held by the broker for reinsurance in a fiduciary capacity in a bank or credit union which is a qualified financial institution.
5. The broker for reinsurance shall comply with the written standards established by the insurer for the cession or retrocession of all risks.
6. The broker for reinsurance shall disclose to the insurer any relationship with any reinsurer to which insurance will be ceded or retroceded.
Last modified: February 27, 2006