(a)Transactions between a reinsurance intermediary
manager and the reinsurer it represents in such capacity shall
only be entered into pursuant to a written contract, specifying
the responsibilities of each party, which shall be approved by
the reinsurer's board of directors. At least forty-five (45)
days before a reinsurer assumes or cedes business through a
reinsurance intermediary manager, a true copy of the contract
shall be filed with the commissioner for approval pursuant to
W.S. 26-15-110(b) and 26-15-111. The contract shall, at a
minimum, provide that:
(i)The reinsurer may terminate the contract for
cause upon written notice to the reinsurance intermediary
manager. The reinsurer may immediately suspend the authority of
the reinsurance intermediary manager to assume or cede busine
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(a) Transactions between a reinsurance intermediary
manager and the reinsurer it represents in such capacity shall
only be entered into pursuant to a written contract, specifying
the responsibilities of each party, which shall be approved by
the reinsurer's board of directors. At least forty-five (45)
days before a reinsurer assumes or cedes business through a
reinsurance intermediary manager, a true copy of the contract
shall be filed with the commissioner for approval pursuant to
W.S. 26-15-110(b) and 26-15-111. The contract shall, at a
minimum, provide that:
(i) The reinsurer may terminate the contract for
cause upon written notice to the reinsurance intermediary
manager. The reinsurer may immediately suspend the authority of
the reinsurance intermediary manager to assume or cede business
during the pendency of any dispute regarding the cause for
termination;
(ii) The reinsurance intermediary manager shall
render accounts to the reinsurer accurately detailing all
material transactions, including information necessary to
support all commissions, charges and other fees received by, or
owing to, the reinsurance intermediary manager, and remit all
funds due under the contract to the reinsurer on not less than a
monthly basis;
(iii) All funds collected for the reinsurer's account
shall be held by the reinsurance intermediary manager in a
fiduciary capacity in a bank which is a qualified United States
financial institution. The reinsurance intermediary manager
shall retain no more than three (3) months estimated claims
payments and allocated loss adjustment expenses. The
reinsurance intermediary manager shall maintain a separate bank
account for each reinsurer that it represents;
(iv) The reinsurance intermediary manager shall
comply with W.S. 26-47-108;
(v) The contract shall not be assigned in whole or in
part by the reinsurance intermediary manager;
(vi) The reinsurance intermediary manager shall
comply with the written underwriting and rating standards
established by the insurer for the acceptance, rejection or
cession of all risks;
(vii) The rates, terms and purposes of commissions,
charges and other fees which the reinsurance intermediary
manager may levy against the reinsurer;
(viii) If the contract permits the reinsurance
intermediary manager to settle claims on behalf of the
reinsurer:
(A) All claims shall be reported to the
reinsurer in a timely manner;
(B) A copy of the claim file shall be sent to
the reinsurer at its request or as soon as it becomes known that
the claim:
(I) Has the potential to exceed an amount
determined by the commissioner or the limit set by the reinsurer
whichever is less;
(II) Involves a coverage dispute;
(III) May exceed the reinsurance
intermediary manager's claims settlement authority;
(IV) Is open for more than six (6) months;
or
(V) Is closed by payment exceeding an
amount set by the commissioner, or an amount set by the
reinsurer, whichever is less.
(C) All claim files shall be the joint property
of the reinsurer and reinsurance intermediary manager. Upon an
order of liquidation of the reinsurer the files shall become the
sole property of the reinsurer or its estate. The reinsurance
intermediary manager shall have reasonable access to and the
right to copy the files on a timely basis;
(D) Any settlement authority granted to the
reinsurance intermediary manager may be terminated for cause
upon the reinsurer's written notice to the reinsurance
intermediary manager or upon the termination of the contract.
The reinsurer may suspend the settlement authority during the
pendency of the dispute regarding the cause of termination.
(ix) If the contract provides for a sharing of
interim profits by the reinsurance intermediary manager, the
interim profits shall not be paid until:
(A) The adequacy of reserves on remaining claims
has been verified pursuant to W.S. 26-47-110(c);
(B) For insurance business other than casualty
insurance business, one (1) year after the end of each
underwriting period; and
(C) For casualty insurance business, five (5)
years after the end of each underwriting period, or a later
period set by the commissioner for specified lines of insurance.
(x) The reinsurance intermediary manager shall
annually provide the reinsurer with a statement of its financial
condition prepared by an independent certified accountant;
(xi) The reinsurer shall at least semiannually
conduct an onsite review of the underwriting and claims
processing operations of the reinsurance intermediary manager;
(xii) The reinsurance intermediary manager shall
disclose to the reinsurer any relationship it has with any
insurer prior to ceding or assuming any business with the
insurer pursuant to the contract;
(xiii) Within the scope of its actual or apparent
authority the acts of the reinsurance intermediary manager shall
be deemed to be the acts of the reinsurer on whose behalf it is
acting.