20-486.03. Books and records; reinsurance intermediary brokers
268 words·~1 min read·
/az/title-20/20-486-03A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. For at least ten years after a contract of reinsurance transacted by the reinsurance intermediary broker expires, the reinsurance intermediary broker shall maintain a complete record for each transaction that shows:
1. The type of contract, limits, underwriting restrictions, classes or risks and territory.
2. The period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation.
3. The reporting and settlement requirements of balances.
4. The rate used to compute the reinsurance premium.
5. The names and addresses of assuming reinsurers.
6. The rates of all reinsurance commissions, including the commissions on any retrocessions that are handled by the reinsurance intermediary broker.
7. Related correspondence and memoranda.
8. Proof of placement.
9. Details regarding retrocessions that are handled by the reinsurance intermediary broker including the identity of persons who receive retrocessions and the percentage of each contract that is assumed or ceded.
10. The financial records, including premium and loss accounts.
11. If the reinsurance intermediary broker procures directly from any assuming reinsurer a reinsurance contract on behalf of a licensed ceding insurer, written evidence that the assuming reinsurer has agreed to assume the risk.
12. If the reinsurance intermediary broker procures through a representative of the assuming reinsurer, other than an employee, a reinsurance contract on behalf of a licensed ceding insurer, written evidence that the reinsurer has delegated binding authority to the representative.
B. The insurer shall have access to and the right to copy and audit all accounts and records related to its business that are maintained by the reinsurance intermediary broker in a form usable by the insurer.