58-14-33. Additional provisions of contract.
340 words·~2 min read·
/sd/title-58/chapter-58-14/58-14-33·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In addition to standards set forth in § 58-14-29 , the contract shall provide:
(1)That the reinsurer and insurer shall have access and the right to copy and audit all accounts and records maintained by the agent or broker related to its business in a form usable by the insurer and reinsurer;
(2)That the contract cannot be assigned in whole or in part by the agent or broker;
(3)That the agent or broker shall comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection or cession of all risks;
(4)That the rates, terms, and purposes of commissions, charges, and other fees which the agent or broker may levy against the reinsurer;
(5)Whether the agent has the authority to settle claims;
(6)If the contract provides for a sharing of interim profits by the agent, that interim profits for property business may not be paid until one year after the end of each underwriting period. Interim profits for casualty business may not be paid for five years after the end of each underwriting period or a later period set by the director for specified lines of casualty insurance. No interim profits may be paid for until the adequacy of reserves on remaining claims has been verified pursuant to § 58-14-36 ;
(7)That the agent or broker shall annually provide the insurer or reinsurer with a statement of its financial condition prepared by an independent certified accountant;
(8)That the reinsurer shall at least semi - annually conduct an on - site review of the underwriting and claims processing operations of the agent;
(9)That the agent shall disclose to the reinsurer any relationship it has with any insurer prior to ceding or assuming any business with the insurer pursuant to the contract; and
(10)That within the scope of its actual or apparent authority, the acts of the agent or broker shall be deemed to be the acts of the reinsurer or insurer on whose behalf it is acting.