375.1130. Insurer's use of manager, restrictions--financial condition statement required. - Missouri Statutes

Insurer's use of manager, restrictions--financial conditionstatement required.

375.1130. 1. The reinsurer shall not engage the servicesof any person, firm, association or corporation to act as an RMon its behalf unless such person is licensed as required bysubsection 2 of section 375.1115.

2. The reinsurer shall annually obtain a copy of statementsof the financial condition of each RM which such reinsurer hasengaged prepared by an independent certified accountant in a formacceptable to the director.

3. If an RM establishes loss reserves, the reinsurer shallannually obtain the opinion of an actuary attesting to theadequacy of loss reserves established for losses incurred andoutstanding on business produced by the RM. This opinion shallbe in addition to any other required loss reserve certification.

4. Binding authority for all retrocessional contracts orparticipation in reinsurance syndicates shall rest with anofficer of the reinsurer who shall not be affiliated with the RM.

5. Within thirty days of termination of a contract with anRM, the reinsurer shall provide written notification of suchtermination to the director.

6. A reinsurer shall not appoint to its board of directors,any officer, director, employee, controlling shareholder orsubproducer of its RM. This subsection shall not apply torelationships governed by chapter 382, RSMo.

(L. 1991 H.B. 385, et al. § 45)

Effective 7-1-92