Maine Revised Statutes Title 24-A Sec. 744 – Required contract provisions; reinsurance intermediary-broker
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Transactions between a reinsurance intermediary-broker and the insurer it represents in such a capacity may be entered into only pursuant to a written authorization specifying the responsibilities of each party. The authorization must, at a minimum, provide that: [PL 1991, c. 828, §20 (NEW).]
1. Termination. The insurer may terminate the reinsurance intermediary-broker’s authority at any time upon 5 days’ written notice to the reinsurance intermediary-broker;
[PL 1991, c. 828, §20 (NEW).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 744
- Cession: means a transfer by a policy originating insurer to a reinsurer of the whole or a portion of a single risk, defined policy or defined division of business as set out in a reinsurance contract. See Maine Revised Statutes Title 24-A Sec. 741
- Fiduciary: A trustee, executor, or administrator.
- Insurer: means every person engaged as principal and as indemnitor, surety or contractor in the business of entering into contracts of insurance who holds an existing certificate of authority to transact insurance in this State pursuant to section 404. See Maine Revised Statutes Title 24-A Sec. 741
- qualified United States financial institution: means an institution that:
A. See Maine Revised Statutes Title 24-A Sec. 741Reinsurance intermediary-broker: means any person, other than an officer or employee of the ceding insurer 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 the insurer. See Maine Revised Statutes Title 24-A Sec. 741 Reinsurer: means any person who operates as an insurer in any manner under applicable provisions of this Title in the assumption of reinsurance risks. See Maine Revised Statutes Title 24-A Sec. 741 Retrocession: means a transfer by a reinsurer to another reinsurer of those risks defined in subsection 2. See Maine Revised Statutes Title 24-A Sec. 741 United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72
2. Accounting. The reinsurance intermediary-broker shall render timely accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by or owed, to the reinsurance intermediary-broker and remit all funds due to the insurer within 30 days of receipt;
[PL 1991, c. 828, §20 (NEW).]
3. Bank as fiduciary. All funds collected for the insurer’s account must be held by the reinsurance intermediary-broker in a fiduciary capacity in a bank that is a qualified United States financial institution;
[PL 1991, c. 828, §20 (NEW).]
4. Compliance with law. The reinsurance intermediary-broker shall comply with section 745;
[PL 1991, c. 828, §20 (NEW).]
5. Compliance with standards. The reinsurance intermediary-broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks; and
[PL 1991, c. 828, §20 (NEW).]
6. Disclosure. The reinsurance intermediary-broker shall disclose to the insurer any relationship with any reinsurer or insurer to which business will be ceded or retroceded.
[PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).