58-14-29. Written contract between agent or broker and insurer or reinsurer.
Any transaction between an agent or broker and the insurer or reinsurer that it represents may only be entered into pursuant to a written contract, specifying the responsibilities of each party. The contract shall, at a minimum, provide that:
(1)The insurer or reinsurer may terminate the contract for cause upon written notice to the agent or broker. A reinsurer may immediately suspend the authority of the agent or broker to assume or cede business during the pendency of any dispute regarding the cause for termination. Within thirty days of the termination of the contract with an agent or broker, the insurer or reinsurer shall provide written notification of the termination to the director;
(2)The agent or broker shall render accounts to the insurer and reinsurer accurately detailing all transactions, including information necessary to support all commissions, charges and other fees received by, or owed to, the agent or broker, and remit all funds due to the insurer or reinsurer within thirty days of receipt;
(3)All funds collected for the insurer's or reinsurer's account shall be held by the agent or broker in a fiduciary capacity in a bank which is a qualified United States financial institution. The agent may retain no more than three months estimated claims payments and allocated loss adjustment expenses. The agent shall maintain a separate bank account for each reinsurer that it represents;
(4)The agent or broker shall comply with §§58-14-30 and 58-14-31;
(5)The agent or broker shall comply with the written standards established by the insurer or reinsurer for the cession or retrocession of all risks; and
(6)The broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
Source: SL 1992, ch 345, §6; SL 1994, ch 379, §2.
Structure South Dakota Codified Laws
Section 58-14-1 - "Reinsurance" defined.
Section 58-14-3 - Risk limits applicable.
Section 58-14-6 - Original insured--No interest in reinsurance.
Section 58-14-7 - Credit for reinsurance allowed for domestic ceding insurer as asset or reduction.
Section 58-14-8 - Credit allowed for reinsurance if assuming insurer licensed in state.
Section 58-14-9 - Requirements for reinsurer to be accredited.
Section 58-14-10 - A lien assuming insurer--Standards--Surplus required--Examination of records.
Section 58-14-11.1 - Trust fund requirements for single assuming insurer.
Section 58-14-12 - Trust fund requirements for group of incorporated underwriters.
Section 58-14-16.1 - Credit allowed for reinsurance ceded to certified reinsurer.
Section 58-14-16.2 - Eligibility for certification as reinsurer.
Section 58-14-16.7 - Rating of certified reinsurer.
Section 58-14-16.11 - Minimum trusteed surplus requirements.
Section 58-14-16.12 - Reduction in allowable credit for insufficient security.
Section 58-14-16.13 - Terminated or suspended certification--Inactive status.
Section 58-14-16.15 - Inactive certified reinsurers.
Section 58-14-16.17 - Diversification of ceding insurer's reinsurance program--Notice requirements.
Section 58-14-16.20 - Suspension or revocation of reinsurer' s accreditation or certification.
Section 58-14-16.21 - Credit for reinsurance during suspension or revocation.
Section 58-14-16.26 - Documents that must be provided to the division.
Section 58-14-16.27 - Prompt payment practices.
Section 58-14-16.28 - List or reciprocal jurisdictions to be published.
Section 58-14-16.29 - List of assuming insurers.
Section 58-14-16.30 - Assuming insurers that no longer meet one or more requirements.
Section 58-14-16.31 - Procedure for denying statement credit.
Section 58-14-16.32 - Assuming insurers in receivership.
Section 58-14-16.33 - Effective date for reinsurers in reciprocal jurisdictions.
Section 58-14-16.34 - Application of reciprocal jurisdiction laws.
Section 58-14-17 - Promulgation of rules.
Section 58-14-18 - Application of reinsurance provisions.
Section 58-14-19 - "Substantially similar" defined.
Section 58-14-20 - Disallowal of credit or deduction.
Section 58-14-21 - "Reinsurer" defined--Examination of reinsurer.
Section 58-14-22 - Application of chapter.
Section 58-14-24 - Definition of terms.
Section 58-14-25 - Persons not agents.
Section 58-14-26 - License required to sell, solicit, negotiate, or place reinsurance.
Section 58-14-27 - Agent or broker bond--Errors and omissions policy.
Section 58-14-28 - Refusal to license--Reasons.
Section 58-14-29 - Written contract between agent or broker and insurer or reinsurer.
Section 58-14-30 - Records of reinsurance contracts.
Section 58-14-31 - Insurer or reinsurer to employ only licensed agent or broker.
Section 58-14-32 - Approval and filing of contract.
Section 58-14-33 - Additional provisions of contract.
Section 58-14-34 - Handling of reinsurer.
Section 58-14-35 - Restrictions on agent.
Section 58-14-37 - Examination of agent or broker--Cost.
Section 58-14-38 - Penalty for violation.
Section 58-14-39 - Rights of third party.
Section 58-14-40 - Adoption of rules.
Section 58-14-41 - Compliance with and application of §§ 58-14-24 to 58-14-42.
Section 58-14-42 - Qualified United States financial institution.
Section 58-14-43 - Restrictions on brokers connected to a firm or association.