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23-62-405. Required contract provisions — Reinsurance intermediary brokers.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-62-405. Required contract provisions — Reinsurance intermediary brokers.
(a) 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.
(b) The 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 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 remit all funds due to the insurer within thirty (30) 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, as defined in § 23-62-403;
(4) The reinsurance intermediary broker will comply with § 23-62-406;
(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: Arkansas Code — historical release 78 (November 6, 2020) · 23-62-405
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:23-62-405
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: f89b8a1c50b28feb0bfdbdb806e047fa53a77c9613960d43d2fa494599824c08
Source location: content.xml paragraph 30555
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23-62-405. Required contract provisions — Reinsurance intermediary brokers.
(a) 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.
(b) The 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 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 remit all funds due to the insurer within thirty (30) 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, as defined in § 23-62-403;
(4) The reinsurance intermediary broker will comply with § 23-62-406;
(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.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-62-403. Qualified United States financial institutions.
For purposes of this subchapter, a “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;
(2) Is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies; and
(3) Has been determined by either the Insurance Commissioner or the Securities Valuation Office of the National Association of Insurance Commissioners to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-62-403
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-62-403. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-62-406. Books and records — Reinsurance intermediary brokers.
(a) For at least ten (10) years after expiration of each contract of reinsurance transacted by the reinsurance intermediary broker, the reinsurance intermediary broker will keep a complete record for each transaction showing:
(1) The type of contract, limits, underwriting restrictions, classes or risks, and territory;
(2) The period of coverage, including effective and expiration dates, cancellation provisions, and notice required of cancellation;
(3) The reporting and settlement requirements of balances;
(4) The rate used to compute the reinsurance premium;
(5) The names and addresses of assuming reinsurers;
(6) The rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary broker;
(7) Related correspondence and memoranda;
(8) Proof of placement;
(9) Details regarding retrocessions handled by the reinsurance intermediary broker, including the identity of retrocessionaires and the percentage of each contract assumed or ceded;
(10) Financial records, including, but not limited to, premium and loss accounts; and
(11) When the reinsurance intermediary broker procures a reinsurance contract on behalf of a licensed ceding insurer:
(A) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(B) 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.
(b) The insurer will have access to and the right to copy and audit all accounts and records maintained by the reinsurance intermediary broker related to its business in a form usable by the in
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-62-406
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-62-406. This identifies an authority to review, not proof of applicability.