Ch. 36                                          1995 LAWS OF MARYLAND

AT LEAST 30 DAYS BEFORE A REINSURER ASSUMES OR CEDES BUSINESS
THROUGH A REINSURANCE MANAGER, A COPY OF THE CONTRACT REQUIRED
UNDER THIS SECTION SHALL BE FILED WITH THE COMMISSIONER FOR APPROVAL.

(C) CONTENTS.

THE CONTRACT REQUIRED BY THIS SECTION:

(1)      SHALL STATE THE RATES, TERMS, AND PURPOSES OF COMMISSIONS,
CHARGES, AND OTHER FEES THAT THE REINSURANCE MANAGER MAY IMPOSE
AGAINST THE REINSURER; AND

(2)      SHALL PROVIDE THAT:

(I)      THE REINSURER SHALL HAVE REASONABLE ACCESS TO AND
THE RIGHT TO COPY ALL ACCOUNTS AND RECORDS MAINTAINED BY THE
REINSURANCE MANAGER THAT RELATE TO BUSINESS TRANSACTIONS WITH THE
REINSURER;

(II)     THE REINSURANCE MANAGER SHALL MAINTAIN ACCOUNTS
AND RECORDS IN A FORM USABLE BY THE REINSURER;

(III)    THE REINSURANCE MANAGER MAY NOT RETAIN FOR MORE
THAN 3 MONTHS ESTIMATED CLAIMS PAYMENTS AND ALLOCATED LOSS
ADJUSTMENT EXPENSES;

(IV)    THE REINSURER MAY:

1.        TERMINATE THE CONTRACT FOR CAUSE ON WRITTEN
NOTICE TO THE REINSURANCE MANAGER; AND

2.        SUSPEND IMMEDIATELY THE AUTHORITY OF THE
REINSURANCE MANAGER TO ASSUME OR CEDE BUSINESS DURING. THE PENDENCY
OF A DISPUTE ABOUT THE TERMINATION OF THE CONTRACT; AND

(V)     THE REINSURANCE MANAGER SHALL:

1.        RENDER ACCOUNTS TO THE REINSURER DETAILING ALL
MATERIAL TRANSACTIONS, INCLUDING INFORMATION NECESSARY TO SUPPORT
THE COMMISSIONS, CHARGES, AND OTHER FEES RECEIVED BY OR OWED TO THE
REINSURANCE MANAGER; .

2.        REMIT TO THE REINSURER AT LEAST MONTHLY ALL
FUNDS DUE UNDER THE CONTRACT;

3.        HOLD IN A FIDUCIARY CAPACITY IN A QUALIFIED
FINANCIAL INSTITUTION ALL FUNDS COLLECTED FOR THE ACCOUNT OF THE
REINSURER;

4.      KEEP A SEPARATE BANK ACCOUNT FOR EACH
REINSURER THAT THE REINSURANCE MANAGER REPRESENTS;

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