§ 8-513

Maryland § 8-513

• Jurisdiction: Maryland
• Article gin: Insurance
• Title: 8

Text

(a) A person may not act as a reinsurance broker for an authorized insurer without a written authorization agreement between the reinsurance broker and the authorized insurer that states the responsibilities of the parties.

(b) The authorization agreement required by this section shall provide that:

(1) on written notice, the authorized insurer may terminate at any time the authority of the reinsurance broker to act for it; and

(2) the reinsurance broker shall:

(i) render accounts to the authorized insurer detailing all material transactions, including information necessary to support the commissions, charges, and other fees received by or owed to the reinsurance broker;

(ii) remit all funds due to the authorized insurer within 30 days after receipt;

(iii) hold in a fiduciary capacity in a qualified financial institution all funds collected for the account of the authorized insurer;

(iv) keep all books, records, and accounts in accordance with § 8-514 of this subtitle;

(v) comply with all written standards established by the authorized insurer for the cession or retrocession of all risks; and

(vi) disclose to the authorized insurer any relationship of the reinsurance broker with a reinsurer to which business is ceded or retroceded.