(a)  For at least ten (10) years after the expiration of each contract of reinsurance transacted by the RB, the RB will keep a complete record for each transaction showing:

(1)  The type of contract, limits, underwriting restrictions, classes, or risks and territory;

(2)  Period of coverage, including effective and expiration dates, cancellation provisions, and notice required of cancellation;

(3)  Reporting and settlement requirements of balances;

(4)  Rate used to compute the reinsurance premium;

(5)  Names and addresses of assuming reinsurers;

(6)  Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the RB;

(7)  Related correspondence and memoranda;

(8)  Proof of placement;

(9)  Details regarding retrocessions handled by the RB including the identity of retrocessionaries and percentage of each contract assumed or ceded;

(10)  Financial records including, but not limited to, premium and loss accounts; and

(11)  When the RB procures a reinsurance contract on behalf of a licensed ceding insurer:

(i)  Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or

(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.

Terms Used In Rhode Island General Laws 27-52-5

  • 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.
  • Reinsurer: means any person, firm, association, or corporation duly licensed in this state pursuant to the applicable provisions of this title as an insurer with the authority to assume reinsurance; and

    (10)  "To be in violation" means that the reinsurance intermediary, insurer, or reinsurer for whom the reinsurance intermediary was acting failed to substantially comply with the provisions of this chapter. See Rhode Island General Laws 27-52-2

  • 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)  The insurer will have access and the right to copy and audit all accounts and records maintained by the RB related to its business in a form usable by the insurer.

History of Section.
P.L. 1992, ch. 445, § 1.