Transactions between an intermediary broker and the insurer it represents in that capacity shall be entered into only under a written contract, specifying the responsibilities of each party. The contract shall, at a minimum, contain provisions that:
        (1) The insurer may terminate the intermediary
    
broker’s authority at any time.
        (2) The 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 intermediary broker and remit all funds due to the insurer within 30 days of receipt.
        (3) All funds collected for the insurer’s account
    
will be held by the intermediary broker in a fiduciary capacity in a bank that is a qualified U.S. financial institution as defined in this Act.
        (4) The intermediary broker will comply with Section
    
20 of this Act.
        (5) The intermediary broker will comply with the
    
written standards established by the insurer for the cession or retrocession of all risks.
        (6) The intermediary broker will disclose to the
    
insurer any relationship with any reinsurer to which business will be ceded or retroceded.
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Terms Used In Illinois Compiled Statutes 215 ILCS 100/15

  • Contract: A legal written agreement that becomes binding when signed.
  • Fiduciary: A trustee, executor, or administrator.
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