Sec. 20. Books and records; reinsurance intermediary brokers.

240 words·~1 min read·/il/chapter-215/act-100/20

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

(a)For at least 10 years after expiration of each contract of reinsurance transacted by it, the intermediary broker shall keep a complete record for each transaction showing:

(1)The type of contract, limits, underwriting restrictions, classes or risks, and

territory.

(2)Period of coverage, including effective and expiration dates, cancellation

provisions, and notice required of cancellations.

(3)Reporting and settlement requirements of balances.

(4)Rate used to compute the reinsurance premium.

(5)Names and addresses of assuming reinsurers.

(6)Rates of all reinsurance commissions, including the commissions on any retrocessions

handled by the intermediary broker.

(7)Related correspondence and memoranda.

(8)Proof of placement.

(9)Details regarding retrocessions handled by the intermediary broker including the

identity of retrocessionaires and percentage of each contract assumed or ceded.

(10)Financial records including, but not limited to, premium and loss accounts.

(11)When an intermediary broker procures a reinsurance contract on behalf of a licensed

ceding insurer:

(A)directly from any assuming reinsurer, written evidence that the assuming

reinsurer has agreed to assume the risk;

(B)if placed through a representative of the assuming reinsurer, other than an

employee, written evidence that the reinsurer has delegated binding authority to the representative.

(b)The insurer shall have access and the right to copy and audit all accounts and records maintained by the intermediary broker related to its business in a form usable by the insurer.