§ 5107. Contract--Minimum provisions
Oklahoma Statutes AnnotatedTitle 36. Insurance
36 Okl.St.Ann. § 5107
§ 5107. Contract--Minimum provisions
Transactions between an RM and the reinsurer the RM represents in such capacity shall be entered into only pursuant to a written contract, specifying the responsibilities of each party, which shall be approved by the board of directors of the reinsurer. At least thirty (30) days before such insurer assumes or cedes business through such producer, a true copy of the approved contract shall be filed with the Commissioner for approval. The contract shall, at a minimum, contain provisions that:
2. The RM shall render accounts to the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing to the RM, and remit all funds due under the contract to the reinsurer on not less than a monthly basis;
3. All funds collected for the account of the reinsurer shall be held by the RM in a fiduciary capacity in a bank which is a qualified U.S. financial institution. The RM may retain no more than three (3) months estimated claims payments and allocated loss adjustment expenses. The RM shall maintain a separate bank account for each reinsurer that the RM represents;
i. details regarding retrocessions handled by the RM, as permitted by Section 30 of this act,1 including the identity of retrocessionaires and percentage of each contract assumed or ceded,
10. If the contract provides for a sharing of interim profits by the RM, the interim profits shall not be paid until one (1) year after the end of each underwriting period for property business and five (5) years after the end of each underwriting period for casualty business and not until the adequacy of reserves on remaining claims has been verified pursuant to the provisions of the Reinsurance Intermediary Act;
Credits
Laws 1992, c. 178, § 28, eff. Sept. 1, 1992.
Footnotes
Title 36, § 5109.
36 Okl. St. Ann. § 5107, OK ST T. 36 § 5107
Current with emergency effective legislation through Chapter 257 of the Second Regular Session of the 59th Legislature (2024). Some sections may be more current, see credits for details.
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