Section 8-513 - Authorization to act as a reinsurance broker. - Maryland Statutes

§ 8-513. Authorization to act as a reinsurance broker.
 

(a)  Required.- A person may not act as a reinsurance broker for an authorized insurer without a written authorization agreement between the reinsurance broker and the authorized insurer that states the responsibilities of the parties. 

(b)  Contents of agreement.- The authorization agreement required by this section shall provide that: 

(1) on written notice, the authorized insurer may terminate at any time the authority of the reinsurance broker to act for it; and 

(2) the reinsurance broker shall: 

(i) render accounts to the authorized insurer detailing all material transactions, including information necessary to support the commissions, charges, and other fees received by or owed to the reinsurance broker; 

(ii) remit all funds due to the authorized insurer within 30 days after receipt; 

(iii) hold in a fiduciary capacity in a qualified financial institution all funds collected for the account of the authorized insurer; 

(iv) keep all books, records, and accounts in accordance with § 8-514 of this subtitle; 

(v) comply with all written standards established by the authorized insurer for the cession or retrocession of all risks; and 

(vi) disclose to the authorized insurer any relationship of the reinsurance broker with a reinsurer to which business is ceded or retroceded. 
 

[An. Code 1957, art. 48A, § 723; 1995, ch. 36.]