California Insurance Code

§ 1781.4

INS § 1781.4Div. 1 · Part 2 · Ch. 6.5

Statute text

Transactions between a reinsurance intermediary-broker and the insurer it represents in that capacity shall only be entered into pursuant to a written authorization specifying the responsibilities of each party. The authorization shall, at a minimum, contain provisions specifying all of the following rights and obligations:

(a)The insurer may terminate the reinsurance intermediary-broker’s authority at any time.

(b)The reinsurance intermediary-broker shall 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.

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Legislative history

Added by Stats. 1991, Ch. 1009, Sec. 1.