Ins 47.03(4) (4) The reinsurance intermediary-broker will comply with s. Ins 47.04.

Ins 47.03(5) (5) The reinsurance intermediary-broker will comply with the written standards established by the insurer for the cession or retrocession of all risks.

Ins 47.03(6) (6) The reinsurance intermediary-broker will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.

Ins 47.03 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.

Ins 47.04 Ins 47.04 Books and records-reinsurance intermediary-brokers.

Ins 47.04(1) (1) A reinsurance intermediary-broker shall keep a complete record for each transaction for at least 10 years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, showing:

Ins 47.04(1)(a) (a) Type of contract, limits, underwriting restrictions, classes or risks and territory;

Ins 47.04(1)(b) (b) Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation;

Ins 47.04(1)(c) (c) Reporting and settlement requirements of balances;

Ins 47.04(1)(d) (d) Rate used to compute the reinsurance premium;

Ins 47.04(1)(e) (e) Names and addresses of assuming reinsurers;

Ins 47.04(1)(f) (f) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary-broker;

Ins 47.04(1)(g) (g) Related correspondence and memoranda;

Ins 47.04(1)(h) (h) Proof of placement;

Ins 47.04(1)(i) (i) Details regarding retrocessions handled by the reinsurance intermediary-broker including the identity of retrocessionaires and percentage of each contract assumed or ceded;

Ins 47.04(1)(j) (j) Financial records, including but not limited to, premium and loss accounts; and

Ins 47.04(1)(k) (k) When the reinsurance intermediary-broker procures a reinsurance contract on behalf of a licensed ceding insurer:

Ins 47.04(1)(k)1. 1. Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or

Ins 47.04(1)(k)2. 2. If placed through a representative of the assuming reinsurer, other than an employe, written evidence that the reinsurer has delegated binding authority to the representative.

Ins 47.04(2) (2) A reinsurance intermediary-broker shall give each insurer it represents access to and the right to copy and audit all accounts and records maintained by the reinsurance intermediary-broker related to the insurer’s business in a form usable by the insurer.

Ins 47.04 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.

Ins 47.05 Ins 47.05 Duties of insurers utilizing the services of a reinsurance intermediary-broker; prohibited function.

Ins 47.05(1) (1) An insurer may not use the services of any person to act as a reinsurance intermediary-broker on its behalf unless the person is licensed as required by this chapter.

Ins 47.05(2) (2) An insurer may not employ an individual who is employed by a reinsurance intermediary-broker with which it transacts business, unless the reinsurance intermediary-broker is under common control with the insurer and subject to ch. 617, Stats., and ch. Ins 40, or the laws and rules of another state which are determined by the commissioner to be substantially similar to ch. 617, Stats., and ch. Ins 40.

Ins 47.05(3) (3) An insurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-broker with which it transacts business.

Ins 47.05(4) (4) A reinsurance intermediary-broker required to be licensed under this chapter may not bind, and an insurer may not give the reinsurance intermediary-broker authority to bind, ceded reinsurance on behalf of the insurer, except that the reinsurance intermediary-broker may bind ceded facultative reinsurance pursuant to obligatory facultative agreements if the contract with the insurer 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 47.05 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.

Ins 47.06 Ins 47.06 Required contract provisions-reinsurance intermediary-manager. No reinsurance intermediary-manager or reinsurer may enter into an agreement or arrangement, or amend or renew an agreement or arrangement, after August 1, 1993 for the reinsurance intermediary-manager to represent the reinsurer, or continue an agreement or arrangement in effect on August 1, 1993 after September 30, 1994, unless the agreement or arrangement is a written contract which specifies the responsibilities of each party and complies with this section, the reinsurance intermediary-manager complies with the contract, and the contract is approved by the reinsurer’s board of directors, is filed with the commissioner for approval at least 30 days before the reinsurer assumes or cedes business through the reinsurance intermediary-manager, and the commissioner approves the contract. The contract shall specify the responsibilities of the reinsurance intermediary-manager, including, but not limited to, the following:

Ins 47.06(1) (1) 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.