375.1117. Transactions between insurer and broker, written authorization required--contents. - Missouri Statutes

Transactions between insurer and broker, written authorizationrequired--contents.

375.1117. Transactions between an RB and the insurer itrepresents in such capacity shall only be entered into pursuantto a written authorization, specifying the responsibilities ofeach party. The authorization shall, at a minimum, containprovisions that:

(1) The insurer may terminate the RB's authority at anytime;

(2) The RB shall render accounts to the insurer accuratelydetailing all material transactions, including informationnecessary to support all commissions, charges and other feesreceived by or owing to the RB, and remit all funds due to theinsurer within thirty days of receipt;

(3) All funds collected for the insurer's account shall beheld by the RB in a fiduciary capacity in a bank which is aqualified United States financial institution;

(4) The RB shall comply with section 375.1120;

(5) The RB shall comply with the written standardsestablished by the insurer for the cession or retrocession of allrisks;

(6) The RB shall disclose to the insurer any relationshipwith any reinsurer to which business will be ceded or retroceded.

(L. 1991 H.B. 385, et al. § 40)

Effective 7-1-92