681A.470 - Brokers: Maintenance of records of transactions; access to accounts and records by insurer. - Nevada Statutes

681A.470  Brokers: Maintenance of records of transactions; access to accounts and records by insurer.

      1.  For 10 years after expiration of each contract of reinsurance transacted by the broker for reinsurance, he or she shall keep a complete record for each transaction, including evidence of:

      (a) The type of contract, limits, underwriting restrictions, classes or risks and territory;

      (b) The period of coverage, including effective and expiration dates and the provisions concerning cancellation and notice of cancellation;

      (c) The requirements for reporting and settling balances;

      (d) The rate used to compute the reinsurance premium;

      (e) The names and addresses of assuming reinsurers;

      (f) The rates of all commissions for reinsurance, including the commissions on any retrocessions handled by the broker for reinsurance;

      (g) Any related correspondence and memoranda;

      (h) Proof of placement;

      (i) Details regarding retrocessions handled by the broker for reinsurance, including the identity of retrocessionaires and the percentage of each contract assumed or ceded;

      (j) Financial records, including accounts of premium and loss; and

      (k) If the broker for reinsurance procures a contract of reinsurance on behalf of a licensed ceding insurer:

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

             (2) Through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.

      2.  A broker for reinsurance shall allow an insurer to have access to and to copy and audit all accounts and records maintained by him or her related to its contract.

      (Added to NRS by 1995, 1762)