40-4505. Same; records to be maintained by reinsurance broker; rights of insurer to access, copy and audit records.

254 words·~1 min read·/ks/chapter-40/40-4505

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 the reinsurance broker, the reinsurance 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 cancellation;

(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 reinsurance broker;

(7)related correspondence and memoranda;

(8)proof of placement;

(9)details regarding retrocessions handled by the reinsurance broker including the identity of retrocessionaires and percentages of each contract assumed or ceded;

(10)financial records, including but not limited to, premium and loss accounts; and

(11)when the reinsurance 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; or

(B)if placed through a representative of the assuming reinsurer, other than an employee, written evidence that such 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 reinsurance broker related to its business in a form usable by the insurer.