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- Alaska Statutes.
- Title 21. Insurance
- Chapter 27. Producers, Agents, Administrators, Brokers, Adjusters, and Managers
- Section 690. Operating Requirements For Reinsurance Intermediary Brokers; Actions For Loss.
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. Trainee Reinsurance Intermediary Brokers. [Repealed, Sec. 53 Ch 96 SLA 2004].
next: Section 700
. Reinsurance Intermediary Broker Records.
AS 21.27.690. Operating Requirements For Reinsurance Intermediary Brokers; Actions For Loss.
- (a) Except as provided in (b) of this section, an insurer may not transact business with a reinsurance intermediary broker
unless the insurer holds a certificate of authority in this state, the reinsurance intermediary broker is licensed in
this state, and there is in effect a written contract between the parties that establishes the responsibilities of each
party, indicates each party's share of responsibility for each particular function, and specifies the division of
responsibilities. The written contract shall be kept in the permanent records of the insurer and the reinsurance
intermediary broker, be open to inspection by the director, and must contain the following minimum provisions:
- (1) the insurer may terminate the reinsurance intermediary broker's authority at any time by written notice sent by
- (2) the reinsurance intermediary broker shall render accounts to the insurer detailing all transactions including
information necessary to support all commissions, charges, and other fees received by or owing to the reinsurance
intermediary broker and remit the money due under the contract to the insurer within 30 days of receipt;
- (3) money collected for the account of an insurer shall be held by the reinsurance intermediary broker as a fiduciary;
- (4) the reinsurance intermediary broker shall maintain separate accounts and records for each insurer and maintain the
records in a form usable by the insurer; the insurer or the authorized representative of the insurer shall have access
and the right to audit and the right to copy all accounts and records related to the insurer's business; the director,
in addition to the other authority granted in this title, shall have access to all books, bank accounts, and records of
the insurance intermediary broker in a form usable to the director;
- (5) the insurer shall establish written standards for the cession or retrocession of all risks, and the reinsurance
intermediary broker shall comply with those standards;
- (6) the reinsurance intermediary broker shall disclose to the insurer all its relationships with insurers and reinsurers
to whom risks are ceded or retroceded; and
- (7) the contract may not be assigned in whole or in part by the reinsurance intermediary broker.
- (b) An insurer may use a nonresident reinsurance intermediary broker who is not licensed under this chapter if the person
is licensed in good standing as a resident reinsurance intermediary broker by an insurance regulator of another state
that is accredited by the National Association of Insurance Commissioners. Upon written request, the director may grant
written permission for a domestic insurer to use an alien reinsurance intermediary broker not licensed by and without a
place of business in a jurisdiction subject to accreditation by the National Association of Insurance Commissioners if
the alien reinsurance intermediary broker is licensed in good standing by its domiciliary insurance regulator. The
domestic insurer and unlicensed reinsurance intermediary broker are subject to all other requirements of this section.
- (c) An insurer may not employ a person who is employed by a reinsurance intermediary broker with which it transacts
business, unless the reinsurance intermediary broker is under common control with the insurer and subject to AS 21.22.
- (d) In a form acceptable to the director, a reinsurance intermediary broker shall annually provide and an insurer shall
annually obtain a copy of certified financial statements of each reinsurance intermediary broker with which the insurer
has done business, prepared by the independent certified public accountant.
- (e) If the director determines after a hearing under AS 21.06.170
- 21.06.240 that a reinsurance intermediary broker
caused losses or damage arising out of a violation of AS 21.27.670
- 21.27.700 to an insurer or reinsurer, the director
may order the reinsurance intermediary broker to make restitution to the insurer, reinsurer, receiver, rehabilitator,
or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer. Restitution ordered
under this subsection is in addition to any other liability of the reinsurance intermediary broker and does not affect
the rights of a policyholder, claimant, creditor, or third party. The director may, at the request of the insurer,
maintain or bring a civil action brought by or on behalf of the reinsurer or insurer and its policyholders and
creditors for recovery of compensatory damages for the benefit of the reinsurer or insurer and its policyholders and
creditors or seek other appropriate relief. If an order of rehabilitation or liquidation of the insurer has been
entered under AS 21.78, the receiver appointed under the order
determines that a person has not materially complied with AS 21.27.670 - 21.27.700 or an order of the director, and the insurer
suffers loss or damage from the noncompliance, the receiver may bring a civil action for the recovery of damages or
other appropriate sanctions for the benefit of the insurer.
- (f) In addition to any other penalty provided by law, a person who violates this section is subject to the penalties
provided under AS 21.27.440 and an insurer's
certificate of authority may be suspended or revoked.
- (g) In this section, "transact" has the meaning given in AS 21.90.900
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