Maryland Statutes
Subtitle 5 - Reinsurance Intermediaries
Section 8-513 - Authorization to Act as a Reinsurance Broker

(a)    A person may not act as a reinsurance broker for an authorized insurer without a written authorization agreement between the reinsurance broker and the authorized insurer that states the responsibilities of the parties.
    (b)    The authorization agreement required by this section shall provide that:
        (1)    on written notice, the authorized insurer may terminate at any time the authority of the reinsurance broker to act for it; and
        (2)    the reinsurance broker shall:
            (i)    render accounts to the authorized insurer detailing all material transactions, including information necessary to support the commissions, charges, and other fees received by or owed to the reinsurance broker;
            (ii)    remit all funds due to the authorized insurer within 30 days after receipt;
            (iii)    hold in a fiduciary capacity in a qualified financial institution all funds collected for the account of the authorized insurer;
            (iv)    keep all books, records, and accounts in accordance with § 8-514 of this subtitle;
            (v)    comply with all written standards established by the authorized insurer for the cession or retrocession of all risks; and
            (vi)    disclose to the authorized insurer any relationship of the reinsurance broker with a reinsurer to which business is ceded or retroceded.

Structure Maryland Statutes