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§ 8-514. Recordkeeping requirements of reinsurance brokers

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 8. Entities that Act as Insurers
Subtitle 5. Reinsurance Intermediaries (Refs & Annos)
MD Code, Insurance, § 8-514
§ 8-514. Recordkeeping requirements of reinsurance brokers
Transactions relating to contracts of reinsurance
(a) A reinsurance broker shall keep a record of each transaction that relates to a contract of reinsurance transacted by the reinsurance broker for at least 10 years after the contract expires.
Contents of records
(b) For each contract of reinsurance, the record required by this section shall include:
(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 required notice of cancellation;
(3) the requirements for reporting and settling 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 commissions on any retrocessions handled by the reinsurance broker;
(7) proof of placement;
(8) details of retrocessions handled by the reinsurance broker, including the identity of retrocessionaires and the percentage of each contract assumed or ceded;
(9) financial records, including premium and loss accounts; and
(10) any related correspondence and memoranda.
Written evidence of acceptance of risk
(c) In addition to the records required by this section, a reinsurance broker shall keep written evidence that the assuming reinsurer:
(1) has agreed to accept the risk, if the reinsurance broker, while acting for a ceding authorized insurer, procured a reinsurance contract directly from an assuming reinsurer; and
(2) has delegated binding authority to its representative, if the reinsurance broker, while acting for a ceding authorized insurer, procures a reinsurance contract from a representative, other than an employee, of an assuming reinsurer.
Access to accounts and records maintained by reinsurance broker
(d)(1) An authorized insurer shall have reasonable access to and the right to copy and audit all accounts and records maintained by the reinsurance broker that relate to business transactions with the authorized insurer.
(2) The reinsurance broker shall maintain accounts and records in a form usable by the authorized insurer.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 724.
MD Code, Insurance, § 8-514, MD INSURANCE § 8-514
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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