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Ins 47.06(9)(b)4. 4. Is open for more than 6 months; or
Ins 47.06(9)(b)5. 5. Is closed by payment of an amount equal to or greater than the lesser of 1% of the reinsurer's policyholder surplus as of the end of the immediately preceding calendar year or an amount set by the reinsurer;
Ins 47.06(9)(c) (c) All claim files will be the joint property of the reinsurer and reinsurance intermediary-manager, but upon an order of liquidation of the reinsurer the files shall become the sole property of the reinsurer or its estate and the reinsurance intermediary-manager shall have reasonable access to and the right to copy the files on a timely basis;
Ins 47.06(9)(d) (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.
Ins 47.06(10) (10) If the contract provides for a sharing of interim profits by the reinsurance intermediary-manager, that the interim profits will not be paid until one year after the end of each underwriting period for property business and 5 years after the end of each underwriting period for casualty business, or a later period set by order of the commissioner for specified lines of insurance, and not until the adequacy of reserves on remaining claims has been verified pursuant to s. Ins 47.08 (3).
Ins 47.06(11) (11) The reinsurance intermediary-manager will annually provide the reinsurer with a statement of its financial condition prepared by an independent certified accountant.
Ins 47.06(12) (12) The reinsurer shall at least semiannually conduct an on-site review of the underwriting and claims processing operations of the reinsurance intermediary-manager.
Ins 47.06(13) (13) The reinsurance intermediary-manager will disclose to the reinsurer any relationship it has with any insurer prior to ceding or assuming any business with the insurer under the contract.
Ins 47.06(14) (14) Within the scope of its actual or apparent authority the acts of the reinsurance intermediary-manager are the acts of the reinsurer on whose behalf it is acting.
Ins 47.06 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.
Ins 47.07 Ins 47.07Prohibited acts. A reinsurance intermediary-manager may not:
Ins 47.07(1) (1) Cede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary-manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for the retrocessions. The guidelines shall include a list of reinsurers with which the automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.
Ins 47.07(2) (2) Commit the reinsurer to participate in reinsurance syndicates.
Ins 47.07(3) (3) Appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which the producer is appointed.
Ins 47.07(4) (4) Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer's policyholder surplus as of December 31 of the last complete calendar year.
Ins 47.07(5) (5) Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, the reinsurance intermediary-manager shall promptly forward a report to the reinsurer.
Ins 47.07(6) (6) Jointly employ an individual who is employed by the reinsurer unless such reinsurance intermediary-manager is under common control with the reinsurer and subject to ch. 617, Stats., and ch. Ins 40, or the laws and rules of another state which are substantially similar to ch. 617, Stats., and ch. Ins 40.
Ins 47.07(7) (7) Appoint a subreinsurance intermediary-manager.
Ins 47.07 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.
Ins 47.08 Ins 47.08Duties of reinsurers utilizing the services of a reinsurance intermediary-manager.
Ins 47.08(1) (1) A reinsurer shall not engage the services of any person to act as a reinsurance intermediary-manager on its behalf unless the person is licensed as required by s. Ins 47.02.
Ins 47.08(2) (2) A reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-manager which the reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the commissioner.
Ins 47.08(3) (3) A 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 reinsurance intermediary-manager if the reinsurance intermediary-manager establishes loss reserves. This opinion is in addition to any other required loss reserve certification required under s. Ins 50.30 (1).
Ins 47.08(4) (4) A reinsurer shall require that binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be associated with the reinsurance intermediary-manager.
Ins 47.08(5) (5) Within 30 days of termination of a contract with a reinsurance intermediary-manager, the reinsurer shall provide written notification of the termination to the commissioner.
Ins 47.08(6) (6) A reinsurer may not appoint to its board of directors, any officer, director, employe, controlling shareholder or subproducer of its reinsurance intermediary-manager and no officer, director, employe, controlling shareholder, director or subproducer of its reinsurance intermediary-manager may accept appointment to or serve on the board of directors of the reinsurer. This subsection shall not apply to relationships governed by ch. 617, Stats., or, if applicable, ch. Ins 45 or a similar law of another state.
Ins 47.08 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93; CR 05-066: am. (3) Register January 2006 No. 601, eff. 2-1-06.
Ins 47.09 Ins 47.09Effect of noncompliance on contract terms. A contract between a reinsurance intermediary and an insurer that violates s. Ins 47.03 or 47.06 is enforceable against the reinsurance intermediary as if it conformed to s. Ins 47.03 or 47.06.
Ins 47.09 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.
Ins 47.10 Ins 47.10Examination authority.
Ins 47.10(1) (1) A reinsurance intermediary may be examined by the commissioner. A reinsurance intermediary shall give the commissioner access to all books, financial institution accounts and records of the reinsurance intermediary in a form usable to the commissioner.
Ins 47.10(2) (2) A reinsurance intermediary-manager may be examined as if it were the reinsurer.
Ins 47.10 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.
Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.