H.B. 422

VETOES

(A)     A REINSURANCE MANAGER SHALL KEEP A RECORD OF EACH
TRANSACTION CONCERNING EACH CONTRACT OF REINSURANCE FOR AT LEAST 10
YEARS AFTER THE EXPIRATION OF THE CONTRACT.

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

(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.

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