Transactions between a reinsurance intermediary-broker and the insurer it represents in that capacity may only be entered into pursuant to a written authorization, which specifies the responsibilities of each party. The authorization shall, at a minimum, provide that the reinsurance intermediary-broker:

(1) may have his authority terminated by the insurer at any time;

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Terms Used In Utah Code 31A-23a-802

  • Fiduciary: A trustee, executor, or administrator.
  • Insurer: is a s defined in Section 31A-1-301, except that the following persons or similar persons are not insurers for purposes of Part 7, Producer Controlled Insurers:
         (4)(a) a risk retention group as defined in:
              (4)(a)(i) the Superfund Amendments and Reauthorization Act of 1986, Pub. See Utah Code 31A-23a-102
  • Reinsurance: means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. See Utah Code 31A-1-301
  • Reinsurance intermediary-broker: means a 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 the insurer. See Utah Code 31A-23a-102
  • Reinsurer: means a person licensed in this state as an insurer with the authority to assume reinsurance. See Utah Code 31A-1-301
  • Retrocession: means reinsurance with another insurer of a liability assumed under a reinsurance contract. See Utah Code 31A-1-301
  • United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(2) 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 reinsurance intermediary-broker, and that he will remit all funds due to the insurer within 30 days of receipt;
(3) shall hold, in a fiduciary capacity, all funds collected for the insurer’s account in a financial institution, which is a qualified United States financial institution;
(4) will comply with Section 31A-23a-803;
(5) will comply with the written standards established by the insurer for the cession or retrocession of all risks; and
(6) will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.