2018 Wyoming Statutes
TITLE 26 - INSURANCE CODE
CHAPTER 47 - REINSURANCE INTERMEDIARIES
SECTION 26-47-107 - Required contract provisions; reinsurance intermediary managers.
26-47-107. Required contract provisions; reinsurance intermediary managers.
(a) Transactions between a reinsurance intermediary manager and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party, which shall be approved by the reinsurer's board of directors. At least forty-five (45) days before a reinsurer assumes or cedes business through a reinsurance intermediary manager, a true copy of the contract shall be filed with the commissioner for approval pursuant to W.S. 26-15-110(b) and 26-15-111. The contract shall, at a minimum, provide that:
(i) 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;
(ii) The reinsurance intermediary manager shall render accounts to the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing to, the reinsurance intermediary manager, and remit all funds due under the contract to the reinsurer on not less than a monthly basis;
(iii) All funds collected for the reinsurer's account shall be held by the reinsurance intermediary manager in a fiduciary capacity in a bank which is a qualified United States financial institution. The reinsurance intermediary manager shall retain no more than three (3) months estimated claims payments and allocated loss adjustment expenses. The reinsurance intermediary manager shall maintain a separate bank account for each reinsurer that it represents;
(iv) The reinsurance intermediary manager shall comply with W.S. 26-47-108;
(v) The contract shall not be assigned in whole or in part by the reinsurance intermediary manager;
(vi) The reinsurance intermediary manager shall comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection or cession of all risks;
(vii) The rates, terms and purposes of commissions, charges and other fees which the reinsurance intermediary manager may levy against the reinsurer;
(viii) If the contract permits the reinsurance intermediary manager to settle claims on behalf of the reinsurer:
(A) All claims shall be reported to the reinsurer in a timely manner;
(B) A copy of the claim file shall be sent to the reinsurer at its request or as soon as it becomes known that the claim:
(I) Has the potential to exceed an amount determined by the commissioner or the limit set by the reinsurer whichever is less;
(II) Involves a coverage dispute;
(III) May exceed the reinsurance intermediary manager's claims settlement authority;
(IV) Is open for more than six (6) months; or
(V) Is closed by payment exceeding an amount set by the commissioner, or an amount set by the reinsurer, whichever is less.
(C) All claim files shall be the joint property of the reinsurer and reinsurance intermediary manager. Upon an order of liquidation of the reinsurer the files shall become the sole property of the reinsurer or its estate. The reinsurance intermediary manager shall have reasonable access to and the right to copy the files on a timely basis;
(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.
(ix) If the contract provides for a sharing of interim profits by the reinsurance intermediary manager, the interim profits shall not be paid until:
(A) The adequacy of reserves on remaining claims has been verified pursuant to W.S. 26-47-110(c);
(B) For insurance business other than casualty insurance business, one (1) year after the end of each underwriting period; and
(C) For casualty insurance business, five (5) years after the end of each underwriting period, or a later period set by the commissioner for specified lines of insurance.
(x) The reinsurance intermediary manager shall annually provide the reinsurer with a statement of its financial condition prepared by an independent certified accountant;
(xi) The reinsurer shall at least semiannually conduct an onsite review of the underwriting and claims processing operations of the reinsurance intermediary manager;
(xii) The reinsurance intermediary manager shall disclose to the reinsurer any relationship it has with any insurer prior to ceding or assuming any business with the insurer pursuant to the contract;
(xiii) Within the scope of its actual or apparent authority the acts of the reinsurance intermediary manager shall be deemed to be the acts of the reinsurer on whose behalf it is acting.
