§ 8-516. Records of reinsurance manager

   (a) In general. -- A reinsurance manager shall keep a record of each transaction that relates to a contract of reinsurance transacted by the reinsurance manager for at least 10 years after the contract expires.

(b) Contents. -- For each contract of reinsurance, the record required by this section shall include:

   (1) the type of contract, limits, underwriting restrictions, classes or risks, and territory;

   (2) the period of coverage, including effective and expiration dates, cancellation provisions, required notice of cancellation, and disposition of outstanding reserves on covered risks;

   (3) the requirements for reporting and settling balances;

   (4) the rate used to compute the reinsurance premium;

   (5) the names and addresses of assuming reinsurers;

   (6) the rates of all reinsurance commissions, including commissions on any retrocessions handled by the reinsurance manager;

   (7) proof of placement;

   (8) details of retrocessions handled by the reinsurance manager, including the identity of retrocessionaires and the percentage of each contract assumed or ceded;

   (9) financial records, including premium and loss accounts; and

   (10) any related correspondence and memoranda.

(c) Evidence of reinsurance. -- In addition to the records required by this section, a reinsurance manager shall keep written evidence that the assuming reinsurer:

   (1) has agreed to accept the risk, if the reinsurance manager, while acting for a ceding authorized insurer, procured a reinsurance contract directly from an assuming reinsurer; and

   (2) has delegated binding authority to its representative, if the reinsurance manager, while acting for a ceding authorized insurer, procures a reinsurance contract from a representative, other than an employee, of an assuming reinsurer.

HISTORY: An. Code 1957, art. 48A, § 727; 1995, ch. 36.