West Virginia Code 33-38-4 – Required contract provisions; reinsurance intermediary-brokers
(a) Transactions between a reinsurance intermediary-broker and the insurer it represents in that capacity may only be entered into pursuant to a written authorization, specifying the responsibilities of each party.
Terms Used In West Virginia Code 33-38-4
- Fiduciary: A trustee, executor, or administrator.
- Insurer: means any person, firm, association or corporation duly licensed in this state pursuant to the applicable provisions of this chapter as an insurer. See West Virginia Code 33-38-2
- qualified United States financial institution: means an institution that:
(1) Is organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or any state thereof. See West Virginia Code 33-38-2
- Reinsurance intermediary-broker: means any person, other than an officer or employee of the ceding insurer, firm, association or corporation who solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer. See West Virginia Code 33-38-2
- Reinsurer: means any person, firm, association or corporation duly licensed or accredited in this state pursuant to the applicable provisions of this chapter as an insurer with the authority to assume reinsurance. See West Virginia Code 33-38-2
(b) Each written authorization shall, at a minimum, provide that:
(1) The insurer may terminate the reinsurance intermediary-broker's authority at any time.
(2) The reinsurance intermediary-broker shall render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing, to the reinsurance intermediary-broker, and remit all funds due to the insurer within thirty days of receipt.
(3) All funds collected for the insurer's account shall be held by the reinsurance intermediary-broker in a fiduciary capacity in a bank which is a qualified United States financial institution as defined herein.
(4) The reinsurance intermediary-broker shall comply with section five of this article.
(5) The reinsurance intermediary-broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks.
(6) The reinsurance intermediary-broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.