20-486.02. Required contract provisions; reinsurance intermediary brokers

193 words·~1 min read·/az/title-20/20-486-02

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A reinsurance intermediary broker and the insurer it represents as a reinsurance intermediary shall enter into a written contract that specifies the responsibilities of each party. The contract at a minimum shall provide that:

1. The insurer may terminate the reinsurance intermediary broker's authority at any time.

2. The reinsurance intermediary broker shall render accounts to the insurer that accurately detail all material transactions, including information necessary to support all commissions, charges and other fees received by or owed to the reinsurance intermediary broker, and shall remit all monies due to the insurer within thirty days of receipt.

3. All monies collected for the insurer's account be held in a fiduciary capacity by the reinsurance intermediary broker in a bank that is a qualified United States financial institution as defined in section 20-486.

4. The reinsurance intermediary broker comply with the provisions of section 20-486.03.

5. The reinsurance intermediary broker comply with the written standards that are established by the insurer for the cession or retrocession of all risks.

6. The reinsurance intermediary broker disclose to the insurer a relationship it has with a reinsurer to which business will be ceded or retroceded.