44-5604. Reinsurance; written authorization required; contents.

182 words·~1 min read·/ne/chapter-44/44-5604

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 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 provide that:

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

(2)The reinsurance 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 reinsurance intermediary-broker, and will remit all funds due to the insurer within thirty days of receipt;

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

(4)The reinsurance intermediary-broker will comply with section 44-5605 ;

(5)The reinsurance intermediary-broker will comply with the written standards established by the insurer for the cession or retrocession of all risks; and

(6)The reinsurance intermediary-broker will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.