31A-23a-802. Required contract provisions -- Reinsurance intermediary-broker.
Transactions between a reinsurance intermediary-broker and the insurer it represents in
that capacity may only be entered into pursuant to a written authorization, which specifies the
responsibilities of each party. The authorization shall, at a minimum, provide that the
reinsurance intermediary-broker:
(1) may have his authority terminated by the insurer at any time;
(2) 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 that he will remit all funds due to the
insurer within 30 days of receipt;
(3) shall hold, in a fiduciary capacity, all funds collected for the insurer's account in a
financial institution, which is a qualified United States financial institution;
(4) will comply with Section 31A-23a-803;
(5) will comply with the written standards established by the insurer for the cession or
retrocession of all risks; and
(6) will disclose to the insurer any relationship with any reinsurer to which business will
be ceded or retroceded.
Renumbered and Amended by Chapter 298, 2003 General Session
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Last revised: Thursday, May 28, 2009