521C.4 Required contract provisions — reinsurance intermediary-brokers.
191 words·~1 min read·
/ia/chapter-521c-reinsurance-intermediaries/521c-4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Transactions between a reinsurance intermediary-broker and the insurer that the reinsurance intermediary-broker 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 satisfy all of the following requirements:
1. The insurer may terminate the authority of the reinsurance intermediary-broker at any time.
2. 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 shall remit all funds due to the insurer within thirty days of receipt.
3. All funds collected for the account of the insurer shall be held by the reinsurance intermediary-broker in a fiduciary capacity in a bank, as defined in section 524.103.
4. The reinsurance intermediary-broker shall comply with section 521C.5.
5. The reinsurance intermediary-broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks.
6. The reinsurance intermediary-broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.