375.1117. Transactions between insurer and broker, written authorization required — contents.

199 words·~1 min read·/mo/chapter-375/375-1117

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

375.1117. Transactions between insurer and broker, written authorization required — contents. — 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 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 RB, and remit all funds due to the insurer within thirty days of receipt;

(3)All funds collected for the insurer's account shall be held by the RB in a fiduciary capacity in a bank which is a qualified United States financial institution;

(4)The RB shall comply with section 375.1120 ;

(5)The RB shall comply with the written standards established by the insurer for the cession or retrocession of all risks;

(6)The RB shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.

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(L. 1991 H.B. 385, et al. § 40)

Effective 7-01-92, see § 375.1140