Section 500.1157 - Record of transaction.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.1157 Record of transaction.
Sec. 1157.
For at least 10 years after expiration of each contract of reinsurance transacted by a reinsurance intermediary, the reinsurance intermediary will keep a complete record for each transaction showing all of the following:
(a) The type of contract, limits, underwriting restrictions, classes or risks, and territory.
(b) Period of coverage, including effective and expiration dates, cancellation provisions, and notice required of cancellation.
(c) Reporting and settlement requirements of balances.
(d) Rate used to compute the reinsurance premium.
(e) Names and addresses of assuming reinsurers.
(f) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary.
(g) Related correspondence and memoranda.
(h) Proof of placement.
(i) Details regarding retrocessions handled by the reinsurance intermediary including the identity of retrocessionaires and percentage of each contract assumed or ceded.
(j) Financial records, including, but not limited to, premium and loss accounts.
(k) When the reinsurance intermediary procures a reinsurance contract on behalf of a licensed ceding insurer as follows:
(i) If directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk.
(ii) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
History: Add. 1994, Act 226, Imd. Eff. June 27, 1994
Popular Name: Act 218