Arizona Laws 20-486.02. Required contract provisions; reinsurance intermediary brokers
A reinsurance intermediary broker and the insurer it represents as a reinsurance intermediary shall enter into a written contract that specifies the responsibilities of each party. The contract at a minimum shall provide that:
Terms Used In Arizona Laws 20-486.02
- Contract: A legal written agreement that becomes binding when signed.
- Fiduciary: A trustee, executor, or administrator.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Insurer: means a person, firm, association or corporation licensed to transact insurance business in this state. See Arizona Laws 20-486
- Reinsurance intermediary: means a reinsurance intermediary broker or a reinsurance intermediary manager. See Arizona Laws 20-486
- Reinsurance intermediary broker: means a person, other than an officer or employee of the ceding insurer, or a firm, association or corporation that solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of the insurer. See Arizona Laws 20-486
- Reinsurer: means a person, firm, association or corporation licensed to transact reinsurance business in this state. See Arizona Laws 20-486
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. The insurer may terminate the reinsurance intermediary broker‘s authority at any time.
2. The reinsurance intermediary broker shall render accounts to the insurer that accurately detail all material transactions, including information necessary to support all commissions, charges and other fees received by or owed to the reinsurance intermediary broker, and shall remit all monies due to the insurer within thirty days of receipt.
3. All monies collected for the insurer’s account be held in a fiduciary capacity by the reinsurance intermediary broker in a bank that is a qualified United States financial institution as defined in section 20-486.
4. The reinsurance intermediary broker comply with the provisions of Section 20-486.03.
5. The reinsurance intermediary broker comply with the written standards that are established by the insurer for the cession or retrocession of all risks.
6. The reinsurance intermediary broker disclose to the insurer a relationship it has with a reinsurer to which business will be ceded or retroceded.