1993 LAWS OF MARYLAND

706.

TO ADD A NAME TO A LICENSE OR DELETE A NAME FROM A LICENSE, THE
LICENSEE SHALL:

(1)      SUBMIT TO THE COMMISSIONER THE CHANGE IN THE FORM THAT
THE COMMISSIONER REQUIRES; AND

(2)      PAY TO THE COMMISSIONER A FEE OF $10.

707.                                                                                                                                                     

(A)     A PERSON MAY NOT ACT AS A REINSURANCE BROKER ON BEHALF OF AN
AUTHORIZED INSURER WITHOUT A WRITTEN AUTHORIZATION BETWEEN THE
REINSURANCE BROKER AND THE AUTHORIZED INSURER SETTING OUT THE
RESPONSIBILITIES OF THE PARTIES.

(B)      THE AUTHORIZATION REQUIRED UNDER THIS SECTION SHALL INCLUDE:

(1)      A PROVISION THAT ON WRITTEN NOTICE AN AUTHORIZED INSURER
MAY TERMINATE THE AUTHORITY OF A REINSURANCE BROKER TO ACT ON ITS
BEHALF AT ANY TIME; AND                                 ....                                     

(2)      PROVISIONS THAT REQUIRE A REINSURANCE INTERMEDIARY TO:

(I)       RENDER ACCOUNTS TO THE AUTHORIZED INSURER
DETAILING ALL MATERIAL TRANSACTIONS, INCLUDING ANY INFORMATION
NECESSARY TO SUPPORT ALL COMMISSIONS, CHARGES, AND OTHER FEES RECEIVED
BY OR OWED TO THE REINSURANCE BROKER;

(II)     REMIT ALL FUNDS DUE TO THE AUTHORIZED INSURER
WITHIN 30 DAYS OF RECEIPT OF THE FUNDS;

(III)    HOLD IN A FIDUCIARY CAPACITY ALL FUNDS COLLECTED FOR
THE ACCOUNT OF THE AUTHORIZED INSURER IN A QUALIFIED FINANCIAL
INSTITUTION;

(IV)    KEEP ALL BOOKS, RECORDS, AND ACCOUNTS IN ACCORDANCE
WITH § 708 OF THIS SUBTITLE;                                                                       

(V)     COMPLY WITH ALL THE. WRITTEN STANDARDS ESTABLISHED
BY AN AUTHORIZED INSURER FOR THE CESSION OR RETROCESSION OF ALL RISKS;

AND

(VI)    DISCLOSE TO THE AUTHORIZED INSURER ANY RELATIONSHIP
OF THE REINSURANCE BROKER WITH ANY REINSURER TO WHICH BUSINESS IS
CEDED OR RETROCEDED.

708.                                                                                                                      

(A) A REINSURANCE BROKER SHALL KEEP A RECORD OF EACH
TRANSACTION CONCERNING A CONTRACT OF REINSURANCE FOR AT LEAST 40
YEARS AFTER THE EXPIRATION OF THE CONTRACT.

- 2236 -

Ch. 405