Ins 47.02(6) (6) A nonresident reinsurance intermediary licensee shall promptly notify the commissioner in writing of every change in its designated agent for service of process, and the change is not effective until acknowledged by the commissioner.

Ins 47.02(7) (7) The commissioner may refuse to issue or revoke, suspend or summarily suspend, a reinsurance intermediary license if the applicant, anyone named on the application or supplement to the application, or any member, principal, officer or director of the applicant, is not trustworthy, or any controlling person is not trustworthy or any of them has given cause for revocation or suspension of a license, or has failed to comply with any prerequisite for the issuance of a reinsurance intermediary license.

Ins 47.02(8) (8) The commissioner may refuse to issue, suspend, summarily suspend or revoke the license of a reinsurance intermediary for violation of chs. 600 to 645, Stats., a rule adopted under chs. 600 to 645, Stats., or on any grounds described in s. 628.10, Stats.

Ins 47.02(9) (9) Licensed attorneys at law who act solely in their professional capacity as attorneys are exempt from this section.

Ins 47.02 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.

Ins 47.03 Ins 47.03 Required contract provisions-reinsurance intermediary-brokers. No reinsurance intermediary-broker or insurer may enter into an agreement or arrangement after August 1, 1993 and after September 30, 1994, no reinsurance intermediary-broker may continue an agreement or arrangement, for the reinsurance intermediary-broker to represent the insurer as a reinsurance intermediary-broker unless the reinsurance intermediary-broker obtains written authorization from the insurer, the reinsurance intermediary-broker complies with the terms of the authorization, and the authorization specifies the responsibilities of each party, including, but not limited to, the following:

Ins 47.03(1) (1) The insurer may terminate the reinsurance intermediary-broker authority at any time.

Ins 47.03(2) (2) The reinsurance intermediary-broker will render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing, to the reinsurance intermediary-broker, and remit all funds due to the insurer within 30 days of receipt.

Ins 47.03(3) (3) The reinsurance intermediary-broker will hold all funds collected for the insurer’s account in a fiduciary capacity in a qualified United States financial institution.

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.