§ 27-52-4 - Required contract provisions – Reinsurance intermediary – Brokers. - Rhode Island Statutes

SECTION 27-52-4

   § 27-52-4  Required contract provisions– Reinsurance intermediary – Brokers. – Transactions between a RB and the insurer it represents in that capacity shallonly be entered into pursuant to a written authorization, specifying theresponsibilities of each party. The authorization shall, at a minimum, providethat:

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

   (2) The RB will render accounts to the insurer accuratelydetailing all material transactions, including information necessary to supportall commissions, charges, and other fees received by, or owing, to the RB, andremit all funds due to the insurer within thirty (30) days of receipt;

   (3) All funds collected for the insurer's account will beheld by the RB in a fiduciary capacity in a bank that is a qualified U.S.financial institution as defined in this chapter;

   (4) The RB will comply with § 27-52-5;

   (5) The RB will comply with the written standards establishedby the insurer for the cession or retrocession of all risks; and

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