§ 27-52-9 - Duties of reinsurers utilizing the services of a reinsurance intermediary – Manager. - Rhode Island Statutes

SECTION 27-52-9

   § 27-52-9  Duties of reinsurers utilizingthe services of a reinsurance intermediary – Manager. – (a) A reinsurer shall not engage the services of any person, firm, association,or corporation to act as a RM on its behalf unless that person is licensed asrequired by the provisions of this chapter.

   (b) The reinsurer shall annually obtain a copy of statementsof the financial condition of each RM which the reinsurer has engaged preparedby an independent certified accountant in a form acceptable to the commissioner.

   (c) If an RM establishes loss reserves, the reinsurer shallannually obtain the opinion of an actuary attesting to the adequacy of lossreserves established for losses incurred and outstanding on business producedby the RM. This opinion shall be in addition to any other required loss reservecertification.

   (d) Binding authority for all retrocessional contracts orparticipation in reinsurance syndicates shall rest with an officer of thereinsurer who shall not be affiliated with the RM.

   (e) Within thirty (30) days of the termination of a contractwith a RM, the reinsurer shall provide written notification of the terminationto the commissioner.

   (f) A reinsurer shall not appoint to its board of directorsany officer, director, employee, controlling shareholder, or subproducer of itsRM. This subsection shall not apply to relationships governed by the InsuranceHolding Systems Act, chapter 35 of this title.