17:22E-6. Written contract required for transactions between reinsurance intermediary-broker, insurer
6. Transactions between a reinsurance intermediary-broker and the insurer it represents in that capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party. The contract shall, at a minimum, provide that:
a. The insurer may terminate the reinsurance intermediary-broker's authority at any time;
b. The reinsurance intermediary-broker shall 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 reinsurance intermediary-broker, and remit all funds due to the insurer within 30 days of receipt;
c. All funds collected for the insurer's account shall be held by the reinsurance intermediary-broker in a fiduciary capacity in a qualified United States financial institution;
d. The reinsurance intermediary-broker shall comply with sections 7 and 8 of this act;
e. The reinsurance intermediary-broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks; and
f. The reinsurance intermediary-broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
L.1993,c.244,s.6.
Section: Previous 17-22d-5 17-22d-6 17-22e-1 17-22e-2 17-22e-3 17-22e-4 17-22e-5 17-22e-6 17-22e-7 17-22e-8 17-22e-9 17-22e-10 17-22e-11 17-22e-12 17-22e-13 Next
Last modified: October 11, 2016