2005 Idaho Code - 41-5109 — DUTIES OF REINSURERS UTILIZING THE SERVICES OF A REINSURANCE INTERMEDIARY -- MANAGER

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 51
                         REINSURANCE INTERMEDIARY ACT
    41-5109.  DUTIES OF REINSURERS UTILIZING THE SERVICES OF A REINSURANCE
INTERMEDIARY -- MANAGER. (1) A reinsurer shall not engage the services of any
person, firm, association or corporation to act as a RM on its behalf unless
such person is licensed as required in section 41-5103(2), Idaho Code.
    (2)  The reinsurer shall annually obtain a copy of the statement(s) of the
financial condition of each RM which such reinsurer has engaged, prepared by
an independent certified accountant in a form acceptable to the director.
    (3)  If a RM establishes loss reserves, the 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
RM. This opinion shall be in addition to any other required loss reserve
certification.
    (4)  Binding authority for all retrocessional contracts or participation
in reinsurance syndicates shall rest with an officer of the reinsurer who
shall not be affiliated with the RM.
    (5)  Within thirty (30) days of termination of a contract with a RM, the
reinsurer shall provide written notification of such termination to the
director.
    (6)  A reinsurer shall not appoint to its board of directors, any officer,
director, employee, controlling shareholder or subproducer of its RM. The
provisions of this subsection shall not apply to relationships governed by
chapter 38, title 41, Idaho Code, or if applicable, chapter 17, title 41,
Idaho Code.