KANSAS STATUTES AND CODES

40-4505. Same; records to be maintained by reinsurance broker; rights of insurer to access, copy and audit records.

40-4505

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

40-4505. Same; records to be maintained by reinsurance broker; rights ofinsurer to access, copy and audit records.(a) For at least 10 years after expiration of each contract ofreinsurance transacted by the reinsurance broker, the reinsurance broker shallkeep a complete record for each transaction showing:

(1) The type of contract, limits, underwriting restrictions, classes orrisks and territory;

(2) period of coverage, including effective and expiration dates,cancellation provisions and notice required of cancellation;

(3) reporting and settlement requirements of balances;

(4) rate used to compute the reinsurance premium;

(5) names and addresses of assuming reinsurers;

(6) rates of all reinsurance commissions, including the commissions on anyretrocessions handled by the reinsurance broker;

(7) related correspondence and memoranda;

(8) proof of placement;

(9) details regarding retrocessions handled by the reinsurance brokerincluding the identity of retrocessionaires and percentages of each contractassumed or ceded;

(10) financial records, including but not limited to, premium and lossaccounts; and

(11) when the reinsurance broker procures a reinsurance contract on behalfof a licensed ceding insurer:

(A) Directly from any assuming reinsurer, written evidence that the assumingreinsurer has agreed to assume the risk; or

(B) if placed through a representative of the assuming reinsurer, other thanan employee, written evidence that such reinsurer has delegated bindingauthority to the representative.

(b) The insurer shall have access and the right to copy and audit allaccounts and records maintained by the reinsurance broker related to itsbusiness in a form usable by the insurer.

History: L. 1992, ch. 15, § 5; Dec. 31.