§ 27-6-9-23 — Engagement of services of a reinsurance intermediary-manager; statement of financial condition; loss reserves; authority to contract; termination; board of directors

Indiana § 27-6-9-23

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 6: REINSURANCE; INTERINSURANCE
• Ch. 9: Reinsurance Intermediaries

Text

(a) A reinsurer may not engage the services
of any person, firm, association, or corporation to act as a RM on its
behalf unless the person engaged is licensed as required by section 13
of this chapter.
(b) A reinsurer shall annually obtain a copy of statements of the
financial condition of each RM which the reinsurer has engaged,
prepared by an independent certified accountant in a form acceptable
to the commissioner.
(c) If a RM establishes loss reserves, the reinsurer shall annually
obtain the opinion of an actuary attesting to the adequacy of loss
reserves established for losses incurred and outstanding on business
produced by the RM. This opinion shall be in addition to any other
required loss reserve certification.
(d) Binding authority for all retrocessional contracts or participation
in reinsurance syndicates shall rest with an officer of the reinsurer, who
must not be affiliated with the RM.
(e) Within thirty (30) days of termination of a contract with a RM,
the reinsurer shall provide written notification of the termination to the
commissioner.
(f) A reinsurer may not appoint to its board of directors any officer,
director, employee, controlling shareholder, or subproducer of its RM.
This subsection does not apply to relationships governed by IC 27-1-23.

Legislative History

As added by P.L.26-1991, SEC.26.