58-14-36. Loss reserves--Actuary's opinion--Employee of agent or broker not to be appointed to reinsurer's board of directors.
121 words·~1 min read·
/sd/title-58/chapter-58-14/58-14-36·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
If an agent or broker establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the agent. This opinion shall be in addition to any other required loss reserve certification. Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who may not be affiliated with an agent or broker.
No reinsurer may appoint to its board of directors, any officer, director, employee, controlling shareholder, or sub - producer of its agent or broker; however, this prohibition does not apply to relationships governed by chapter 58-5A or, if applicable, chapter 58-30 .