Sec. 15. Required contract provisions; reinsurance intermediary brokers.

194 words·~1 min read·/il/chapter-215/act-100/15

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Sec. 15. Required contract provisions; reinsurance intermediary brokers. Transactions between an intermediary broker and the insurer it represents in that capacity shall be entered into only under a written contract, specifying the responsibilities of each party. The contract shall, at a minimum, contain provisions that:

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

(2)The intermediary broker 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 intermediary broker 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 intermediary

broker in a fiduciary capacity in a bank that is a qualified U.S. financial institution as defined in this Act.

(4)The intermediary broker will comply with Section 20 of this Act.

(5)The intermediary broker will comply with the written standards established by the

insurer for the cession or retrocession of all risks.

(6)The intermediary broker will disclose to the insurer any relationship with any

reinsurer to which business will be ceded or retroceded.