Louisiana Revised Statutes 22:1725 – Books and records; reinsurance intermediary-brokers
Terms Used In Louisiana Revised Statutes 22:1725
- Contract: A legal written agreement that becomes binding when signed.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Insurer: shall mean any authorized insurer as defined in La. See Louisiana Revised Statutes 22:1722
- Reinsurance intermediary-broker: shall mean any person, other than an officer or employee of the ceding insurer, 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 Louisiana Revised Statutes 22:1722
- Reinsurer: shall mean any person duly licensed in this state, pursuant to the applicable provisions of this Code, as an insurer with the authority to assume reinsurance. See Louisiana Revised Statutes 22:1722
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
A. For no less than ten years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, the reinsurance intermediary-broker shall keep a complete record for each transaction showing:
(1) The type of contract, limits, underwriting restrictions, classes or risks and territory.
(2) The period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation.
(3) Reporting and settlement requirements of balances.
(4) The rate used to compute the reinsurance premium.
(5) The names and addresses of assuming reinsurers.
(6) The rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary-broker.
(7) Any related correspondence and memoranda.
(8) The proof of placement.
(9) Details regarding retrocessions handled by the reinsurance intermediary-broker, including the identity of retrocessionaires and percentage of each contract assumed or ceded.
(10) Financial records, including but not limited to premium and loss accounts.
(11) When the reinsurance intermediary-broker procures a reinsurance contract on behalf of a licensed ceding insurer:
(a) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk.
(b) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative.
B. The insurer shall have access and the right to copy and audit all accounts and records maintained by the reinsurance intermediary-broker to its business in a form usable by the insurer.
Acts 1992, No. 811, §1; Redesignated from La. Rev. Stat. 22:1210.24 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.