Michigan Laws 500.1157 – Record of transaction
Current as of: 2023 | Check for updates
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For at least 10 years after expiration of each contract of reinsurance transacted by a reinsurance intermediary, the reinsurance intermediary will keep a complete record for each transaction showing all of the following:
(a) The type of contract, limits, underwriting restrictions, classes or risks, and territory.
Terms Used In Michigan Laws 500.1157
- Contract: A legal written agreement that becomes binding when signed.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Insurer: means an individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds organization, fraternal benefit society, or other legal entity, engaged or attempting to engage in the business of making insurance or surety contracts. See Michigan Laws 500.106
- Rate: means the cost of insurance per payroll before adjustment for an individual insured's size, exposure, or loss experience. See Michigan Laws 500.2402
- Reinsurance intermediary: means a reinsurance intermediary-broker or a reinsurance intermediary-manager. See Michigan Laws 500.1151
- Reinsurer: means any person duly authorized in this state pursuant to the applicable provisions of this act as an insurer with the authority to assume reinsurance. See Michigan Laws 500.1151
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(b) Period of coverage, including effective and expiration dates, cancellation provisions, and notice required of cancellation.
(c) Reporting and settlement requirements of balances.
(d) Rate used to compute the reinsurance premium.
(e) Names and addresses of assuming reinsurers.
(f) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary.
(g) Related correspondence and memoranda.
(h) Proof of placement.
(i) Details regarding retrocessions handled by the reinsurance intermediary including the identity of retrocessionaires and percentage of each contract assumed or ceded.
(j) Financial records, including, but not limited to, premium and loss accounts.
(k) When the reinsurance intermediary procures a reinsurance contract on behalf of a licensed ceding insurer as follows:
(i) If directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk.
(ii) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.