Section 8-516 - Records of reinsurance manager.

§ 8-516. Records of reinsurance manager.
 

(a)  In general.- A reinsurance manager shall keep a record of each transaction that relates to a contract of reinsurance transacted by the reinsurance manager for at least 10 years after the contract expires. 

(b)  Contents.- For each contract of reinsurance, the record required by this section shall include: 

(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, required notice of cancellation, and disposition of outstanding reserves on covered risks; 

(3) the requirements for reporting and settling 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 commissions on any retrocessions handled by the reinsurance manager; 

(7) proof of placement; 

(8) details of retrocessions handled by the reinsurance manager, including the identity of retrocessionaires and the percentage of each contract assumed or ceded; 

(9) financial records, including premium and loss accounts; and 

(10) any related correspondence and memoranda. 

(c)  Evidence of reinsurance.- In addition to the records required by this section, a reinsurance manager shall keep written evidence that the assuming reinsurer: 

(1) has agreed to accept the risk, if the reinsurance manager, while acting for a ceding authorized insurer, procured a reinsurance contract directly from an assuming reinsurer; and 

(2) has delegated binding authority to its representative, if the reinsurance manager, while acting for a ceding authorized insurer, procures a reinsurance contract from a representative, other than an employee, of an assuming reinsurer. 
 

[An. Code 1957, art. 48A, § 727; 1995, ch. 36.]