Managers: Transactions with reinsurer; termination; duties.
1. Transactions between a manager for reinsurance and the reinsurer he represents must only be entered into pursuant to a written contract which specifies the responsibilities of each party and is approved by the board of directors of the reinsurer. At least 30 days before a reinsurer assumes or cedes insurance, a copy of the contract must be filed with the Commissioner for approval.
2. The reinsurer may terminate the contract for cause upon written notice to the manager for reinsurance and the reinsurer may suspend the authority of the manager for reinsurance to assume or cede insurance during the pendency of any dispute regarding the cause for termination.
3. The manager for reinsurance shall:
(a) 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 him; and
(b) Remit all money due pursuant to the contract to the reinsurer monthly.
4. All money collected for the account of the reinsurer must be held by the manager for reinsurance, in a fiduciary capacity, in a bank or credit union which is a qualified financial institution. The manager for reinsurance may retain no more than the total of 3 months’ estimated payments on claims and allocated expenses of adjusting losses. The manager for reinsurance shall maintain a separate account in a bank or credit union for each reinsurer that he represents.
5. The contract must not be assigned in whole or in part by the manager for reinsurance.
Last modified: February 27, 2006