§ 58-14-30 — Records of reinsurance contracts.

For at least ten years after expiration of each contract of reinsurance transacted by the agent or broker, the agent or broker shall keep a complete record for each transaction showing: (1) The type of contract, limits, underwriting restrictions, classes or risks, and territory; (2) Period of coverage, including effective and expiration dates, cancellation provisions, and notice required for cancellation. The agent shall also maintain a record of the disposition of outstanding reserves on covered risks; (3) Reporting and settlement requirements of balances; (4) Rate used to compute the reinsurance premium; (5) Names and addresses of reinsurers; (6) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the agent or broker; (7) Related correspondence and memoranda; (8) Proof of placement; (9) Details regarding retrocessions handled by the agent or broker including the identity of retrocessionaires and percentage of each contract assumed or ceded. Retrocessions for the agent are also subject to § 58-14-36 ; (10) Financial records, including but not limited to, premium and loss accounts; and (11) When the agent or broker procures a reinsurance contract on behalf of a licensed ceding insurer: (a) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or (b) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.

Legislative History

SL 1992, ch 345, § 7.