Section 47.08. Duties of reinsurers utilizing the services of a reinsurance intermediary-manager.

 

(1)  A reinsurer shall not engage the services of any person to act as a reinsurance intermediary-manager on its behalf unless the person is licensed as required by s. Ins 47.02 .

(2)  A reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-manager which the reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the commissioner.

(3)  A 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 reinsurance intermediary-manager if the reinsurance intermediary-manager establishes loss reserves. This opinion is in addition to any other required loss reserve certification required under s. Ins 50.30 (1) .

(4)  A reinsurer shall require that binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be associated with the reinsurance intermediary-manager.

(5)  Within 30 days of termination of a contract with a reinsurance intermediary-manager, the reinsurer shall provide written notification of the termination to the commissioner.

(6)  A reinsurer may not appoint to its board of directors, any officer, director, employe, controlling shareholder or subproducer of its reinsurance intermediary-manager and no officer, director, employe, controlling shareholder, director or subproducer of its reinsurance intermediary-manager may accept appointment to or serve on the board of directors of the reinsurer. This subsection shall not apply to relationships governed by ch. 617 , Stats. , or, if applicable, ch. Ins 45 or a similar law of another state.

History: Cr. Register, July, 1993, No. 451 , eff. 8-1-93; CR 05-066 : am. (3) Register January 2006 No. 601 , eff. 2-1-06.