§ 1604. Required contract provisions; reinsurance intermediary-brokers.
178 words·~1 min read·
/de/title-18/chapter-16-reinsurance-intermediary-act/1604·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Transactions between an RB and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall, at a minimum, contain provisions that:
(1)The insurer may terminate the RB’s authority at any time.
(2)The RB will 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 RB, and remit all funds due to the insurer within 30 days of receipt.
(3)All funds collected for the insurer’s account will be held by the RB in a fiduciary capacity in a bank which is a qualified United States financial institution as defined herein.
(4)The RB will comply with § 1605 of this title.
(5)The RB will comply with the written standards established by the insurer for the cession or retrocession of all risks.
(6)The RB will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.