Nebraska Statutes 44-5604. Reinsurance; written authorization required; contents
Transactions between a reinsurance intermediary-broker and the insurer it represents in such capacity shall only be entered into pursuant to a written authorization specifying the responsibilities of each party. The authorization shall at a minimum provide that:
Terms Used In Nebraska Statutes 44-5604
- Fiduciary: A trustee, executor, or administrator.
- Insurer: shall include all companies, exchanges, societies, or associations whether organized on the stock, mutual, assessment, or fraternal plan of insurance and reciprocal insurance exchanges. See Nebraska Statutes 44-103
- Reinsurance: shall mean a contract by which an insurer procures a third party to insure it against loss or liability by reason of such original insurance. See Nebraska Statutes 44-103
- United States: shall include territories, outlying possessions, and the District of Columbia. See Nebraska Statutes 49-801
(1) The insurer may terminate the reinsurance intermediary-broker’s authority at any time;
(2) The reinsurance intermediary-broker will 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 will remit all funds due to the insurer within thirty days of receipt;
(3) All funds collected for the insurer’s account will be held by the reinsurance intermediary-broker in a fiduciary capacity in a bank which is a qualified United States financial institution;
(4) The reinsurance intermediary-broker will comply with section 44-5605 ;
(5) The reinsurance intermediary-broker will comply with the written standards established by the insurer for the cession or retrocession of all risks; and
(6) The reinsurance intermediary-broker will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
Source
- Laws 1992, LB 1006, § 58.