Kansas Statutes 40-4504. Contracts between reinsurance brokers and insurers; written authorization required, contents
Transactions between a reinsurance broker 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, provide that:
(a) The insurer may terminate the reinsurance broker’s authority at any time;
Terms Used In Kansas Statutes 40-4504
- Fiduciary: A trustee, executor, or administrator.
- Insurer: means any person, firm, association or corporation duly licensed in this state, pursuant tochapter 40 of the Kansas Statutes Annotated, as an insurer. See Kansas Statutes 40-4502
- qualified United States financial institution: means an institution that:
(1) Is organized or, in the case of a United States office of a foreign banking organization licensed, under the laws of the United States or any state thereof;
(2) is regulated, supervised and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and
(3) has been determined by either the commissioner, or the securities valuation office of the national association of insurance commissioners, to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner. See Kansas Statutes 40-4502
- reinsurance broker: means any person, other than an officer or employee of the ceding insurer, firm, association or corporation who 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 such insurer. See Kansas Statutes 40-4502
- Reinsurer: means any person, firm, association or corporation duly licensed in this state pursuant tochapter 40 of the Kansas Statutes Annotated as an insurer with the authority to assume reinsurance. See Kansas Statutes 40-4502
(b) the reinsurance broker shall 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 reinsurance broker, and remit all funds due to the insurer within 30 days of receipt;
(c) all funds collected for the insurer’s account shall be held by the reinsurance broker in a fiduciary capacity in a bank which is a qualified United States financial institution as defined herein;
(d) the reinsurance broker shall comply with Kan. Stat. Ann. § 40-4505;
(e) the reinsurance broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks; and
(f) the reinsurance broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.