Section 47.03. Required contract provisions-reinsurance intermediary-brokers.

  No reinsurance intermediary-broker or insurer may enter into an agreement or arrangement after August 1, 1993 and after September 30, 1994, no reinsurance intermediary-broker may continue an agreement or arrangement, for the reinsurance intermediary-broker to represent the insurer as a reinsurance intermediary-broker unless the reinsurance intermediary-broker obtains written authorization from the insurer, the reinsurance intermediary-broker complies with the terms of the authorization, and the authorization specifies the responsibilities of each party, including, but not limited to, the following:

(1)  The insurer may terminate the reinsurance intermediary-broker 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 remit all funds due to the insurer within 30 days of receipt.

(3)  The reinsurance intermediary-broker will hold all funds collected for the insurer's account in a fiduciary capacity in a qualified United States financial institution.

(4)  The reinsurance intermediary-broker will comply with s. Ins 47.04 .

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

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

History: Cr. Register, July, 1993, No. 451 , eff. 8-1-93.