40-4504. Contracts between reinsurance brokers and insurers; written authorization required, contents. - Kansas Statutes

40-4504

Chapter 40.--INSURANCE Article 45.--REGULATION OF REINSURANCE INTERMEDIARIES

      40-4504.   Contracts between reinsurance brokers and insurers; writtenauthorization required, contents.Transactions between a reinsurance broker and the insurer itrepresents in such capacity shall only be entered into pursuant to a writtenauthorization, specifying the responsibilities of each party. Theauthorization shall, at a minimum, provide that:

      (a)   The insurer may terminate the reinsurance broker's authority at anytime;

      (b)   the reinsurance broker shall render accounts to the insurer accuratelydetailing all material transactions, including information necessary to supportall commissions, charges and other fees received by, or owing, to thereinsurance broker, and remit all funds due to the insurer within 30 days ofreceipt;

      (c)   all funds collected for the insurer's account shall be held by thereinsurance broker in a fiduciary capacity in a bank which is a qualifiedUnited States financial institution as defined herein;

      (d)   the reinsurance broker shall comply with K.S.A. 40-4505;

      (e)   the reinsurance broker shall comply with the written standardsestablished by the insurer for the cession or retrocession of all risks; and

      (f)   the reinsurance broker shall disclose to the insurer any relationshipwith any reinsurer to which business will be ceded or retroceded.

      History:   L. 1992, ch. 15, § 4; Dec. 31.