WILLIAM DONALD SCHAEFER, Governor                            Ch. 405

(B)      THE RECORD REQUIRED UNDER THIS SECTION FOR EACH CONTRACT OF
REINSURANCE SHALL SHOW:

(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)      THE REPORTING AND SETTLEMENT REQUIREMENTS OF BALANCES;

(4)      THE RATES 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 BROKER;

(7)      THE PROOF OF PLACEMENT;

(8)      THE DETAILS REGARDING RETROCESSIONS HANDLED BY THE
REINSURANCE BROKER, INCLUDING THE IDENTITY OF RETROCESSIONAIRES AND
THE PERCENTAGE OF EACH CONTRACT ASSUMED OR CEDED;

(9)      THE FINANCIAL RECORDS, INCLUDING PREMIUM AND LOSS
ACCOUNTS; AND

(10)    ANY RELATED CORRESPONDENCE AND MEMORANDA.

(C)      IN ADDITION TO THE RECORD REQUIREMENT OF THIS SECTION, A
REINSURANCE BROKER SHALL KEEP WRITTEN EVIDENCE THAT SHOWS:

(1)      THE ASSUMING REINSURER HAS AGREED TO ACCEPT THE RISK, IF
THE REINSURANCE BROKER, WHILE ACTING ON BEHALF OF A CEDING AUTHORIZED
INSURER, PROCURED A REINSURANCE CONTRACT DIRECTLY FROM AN ASSUMING
REINSURER; AND

(2)      THE ASSUMING REINSURER HAS DELEGATED BINDING AUTHORITY
TO ITS REPRESENTATIVE, IF THE REINSURANCE BROKER, WHILE ACTING ON
BEHALF OF A CEDING AUTHORIZED INSURER, PROCURES A REINSURANCE
CONTRACT FROM A REPRESENTATIVE, OTHER THAN AN EMPLOYEE, OF AN
ASSUMING REINSURER.

(D)     THE AUTHORIZED INSURER SHALL HAVE REASONABLE ACCESS TO, AND
A RIGHT TO COPY AND AUDIT ALL ACCOUNTS AND RECORDS MAINTAINED BY THE
REINSURANCE BROKER CONCERNING ITS BUSINESS TRANSACTIONS WITH THE
AUTHORIZED INSURER IN A FORM USABLE BY THE AUTHORIZED INSURER.

709.

(A) AN AUTHORIZED INSURER MAY NOT ENGAGE THE SERVICES OF ANY
PERSON TO ACT AS A REINSURANCE BROKER ON ITS BEHALF, UNLESS THE PERSON
HAS COMPLIED WITH THE PROVISIONS OF THIS SUBTITLE.

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