38.2-1349 - Required contract provisions; reinsurance intermediary brokers. - Virginia Statutes

§ 38.2-1349. Required contract provisions; reinsurance intermediary brokers.

Transactions between a reinsurance intermediary broker and the insurer itrepresents in such capacity shall only be entered into pursuant to a writtenauthorization, specifying the responsibilities of each party. Theauthorization shall, at a minimum, provide that:

1. The insurer may terminate the reinsurance intermediary broker's authorityat any time;

2. The reinsurance intermediary broker will render accounts to the insureraccurately detailing all material transactions, including informationnecessary to support all commissions, charges and other fees received by, orowing to, the reinsurance intermediary broker, and remit all funds due to theinsurer within thirty calendar days of receipt;

3. All funds collected for the insurer's account will be held by thereinsurance intermediary broker in a fiduciary capacity in a bank that is aqualified United States financial institution as defined in § 38.2-1347;

4. The reinsurance intermediary broker will comply with § 38.2-1350;

5. The reinsurance intermediary broker will comply with the written standardsestablished by the insurer for the cession or retrocession of all risks; and

6. The reinsurance intermediary broker will disclose to the insurer anyrelationship with any reinsurer to which business will be ceded or retroceded.

(2001, c. 706.)