§431:9B-103 - Required contract provisions; reinsurance intermediary-brokers. - Hawaii Statutes

     §431:9B-103  Required contract provisions; reinsurance intermediary-brokers.  Transactions between a reinsurance intermediary-broker and the insurer it represents in that capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party.  The authorization, at a minimum, shall provide that:

     (1)  The insurer may terminate the reinsurance intermediary-broker's authority at any time;

     (2)  The reinsurance intermediary-broker shall 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 thirty days of receipt;

     (3)  All funds collected for the insurer's account shall be held by the reinsurance intermediary-broker in a fiduciary capacity and deposited in a bank that is a qualified United States financial institution;

     (4)  The reinsurance intermediary-broker shall comply with section 431:9B-104;

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

     (6)  The reinsurance intermediary-broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded. [L 1992, c 176, pt of §6; am L 1993, c 321, §12]