WILLIAM DONALD SCHAEFER, Governor

Ch. 405

(1)      THE TYPE OF CONTRACT, LIMITS, UNDERWRITING RESTRICTIONS,
CLASSES OF RISKS, AND TERRITORY;

(2)      THE PERIOD OF COVERAGE, INCLUDING EFFECTIVE AND
EXPIRATION DATES, CANCELLATION PROVISIONS, NOTICE REQUIRED OF
CANCELLATION, AND DISPOSITION OF OUTSTANDING RESERVES ON COVERED
RISKS;

(3)      THE REPORTING AND SETTLEMENT REQUIREMENTS OF BALANCES;

(4)      THE RATE USED TO COMPUTE THE REINSURANCE PREMIUM;

(5)      THE NAMES AND ADDRESSES OF REINSURERS;

(6)      THE RATES OF ALL REINSURANCE COMMISSIONS, INCLUDING THE
COMMISSIONS ON ANY RETROCESSIONS HANDLED BY THE REINSURANCE
MANAGER;

(7)      THE PROOF OF PLACEMENT;

(8)      THE DETAILS REGARDING RETROCESSIONS HANDLED BY THE
REINSURANCE MANAGER, 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 MANAGER SHALL KEEP WRITTEN EVIDENCE THAT SHOWS:

(1)      THE ASSUMING REINSURER HAS AGREED TO ACCEPT THE RISK, IF
THE REINSURANCE MANAGER, 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 MANAGER, WHILE ACTING ON
BEHALF OF A CEDING AUTHORIZED INSURER, PROCURES A REINSURANCE
CONTRACT FROM A REPRESENTATIVE, OTHER THAN AN EMPLOYEE, OF AN
ASSUMING REINSURER.

712.

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

(B)      THE REINSURER SHALL OBTAIN ANNUALLY A COPY OF STATEMENTS BY
AN INDEPENDENT CERTIFIED ACCOUNTANT IN A FORM ACCEPTABLE TO THE
COMMISSIONER OF THE FINANCIAL CONDITION OF EACH REINSURANCE MANAGER
WITH WHICH IT HAS DONE BUSINESS.

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