60A.74 DUTIES OF REINSURER UTILIZING THE SERVICES OF A REINSURANCE
Subdivision 1. Licensed persons to be used.
A reinsurer shall not engage the services of any
person, firm, association, or corporation to act as an RM on its behalf unless the person is licensed
as required by section
60A.71, subdivision 2
Subd. 2. Annual financial statements to be obtained.
The reinsurer shall annually obtain
a copy of statements of the financial condition of each RM which the reinsurer has engaged
prepared by an independent certified accountant in a form acceptable to the commissioner.
Subd. 3. Loss reserve opinions.
If an 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 must be in
addition to any other required loss reserve certification.
Subd. 4. Binding authority.
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.
Subd. 5. Notification of termination.
Within 30 days of termination of a contract with an
RM, the reinsurer shall provide written notification of the termination to the commissioner.
Subd. 6. Restriction on board appointments.
A reinsurer shall not appoint to its board of
directors, any officer, director, employee, controlling shareholder, or subproducer of its RM.
This subdivision does not apply to relationships governed by chapter 60D or, if applicable, the
Business Transacted With Producer Controlled Insurer Act, sections
History: 1991 c 325 art 11 s 9; 1993 c 13 art 1 s 16; 2000 c 260 s 12