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§ 321.3. Required contract provisions for reinsurance intermediary-Brokers

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. Insurance

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 40 P.S. Insurance (Refs & Annos)
Chapter 1. Insurance Department (Refs & Annos)
Article VII. Reinsurance Intermediaries (Refs & Annos)
40 P.S. § 321.3
§ 321.3. Required contract provisions for reinsurance intermediary-Brokers
Currentness
Transactions between an RB 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 contain provisions which provide as follows:
(1) The insurer may terminate the RB's authority at any time.
(2) The RB 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 RB and 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 RB in a fiduciary capacity in a bank which is a qualified United States financial institution.
(4) The RB will comply with section 704.1
(5) The RB will comply with the written standards established by the insurer for the cession or retrocession of all risks.
(6) The RB will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.

Credits

1921, May 17, P.L. 789, No. 285, art. VII, § 703, added 1992, Dec. 18, P.L. 1496, No. 177, § 12, effective in 120 days.

Footnotes

1
40 P.S. § 321.4.
40 P.S. § 321.3, PA ST 40 P.S. § 321.3
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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