Title 58, INSURANCE

The director may require an agent or broker under §§ 58-14-24 to 58-14-42 , inclusive, to file a bond in an amount acceptable to the director for the protection of the reinsurer or maintain an errors and omissions policy in an amount acceptable to the director, or both. Source: S…

The director may refuse to license an agent or broker in reinsurance if the applicant, any one named on the application, or any member, principal, officer or director of the applicant, is not trustworthy; if any controlling person of the applicant is not trustworthy; if there has…

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 term…

An insurer may only reinsure risks within the limits it is authorized to insure. Source: SL 1966, ch 111 , ch 4, § 10 (1); SL 1992, ch 344 , § 14.

For at least ten years after expiration of each contract of reinsurance transacted by the agent or broker, the agent or broker shall keep a complete record for each transaction showing: (1) The type of contract, limits, underwriting restrictions, classes or risks, and territory; …

No insurer or reinsurer may engage the services of any person to act as an agent or broker on its behalf unless the person is licensed as required by §§ 58-14-24 to 58-14-42 , inclusive, nor employ an individual who is employed by an agent or broker with which it transacts busine…

The written contract with the agent, pursuant to § 58-14-29 , specifying the responsibilities of each party, shall be approved by the reinsurer's board of directors. At least thirty days before the insurer or reinsurer assumes or cedes business through the agent or broker, the co…

In addition to standards set forth in § 58-14-29 , the contract shall provide: (1) That the reinsurer and insurer shall have access and the right to copy and audit all accounts and records maintained by the agent or broker related to its business in a form usable by the insurer a…

If the contract permits the agent or broker to settle claims on behalf of the reinsurer, the contract shall state the claims shall be handled as follows: (1) All claims shall be reported to the reinsurer in a timely manner; (2) A copy of the claim file shall be sent to the reinsu…

The agent may not: (1) Cede retrocessions on behalf of the reinsurer. However, the agent or broker may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for the retrocession…

If an agent or broker 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 agent. This opinion shall be in addition to any ot…

Any person doing business as an agent or broker under §§ 58-14-24 to 58-14-42 , inclusive, is subject to examination by the director. The director shall have access to all books, bank accounts and records of the person in a form usable to the director. Any person contracting with…

Any agent or broker, insurer or reinsurer found by the director, after a hearing conducted in accordance with chapter 1-26 , to be in violation of any provision of §§ 58-14-24 to 58-14-42 , inclusive, shall: (1) For each separate violation, pay a penalty in an amount not exceedin…

Nothing contained in §§ 58-14-24 to 58-14-42 , inclusive, limits or restricts the rights of policyholders, claimants, creditors, or other third parties or confer any rights to those persons. Source: SL 1992, ch 345 , § 16.

No credit may be allowed, as an asset or as a deduction from liability, to any ceding insurer for reinsurance unless the reinsurance contract provides, in substance, that in the event of the insolvency of the ceding insurer, the reinsurance is payable under a contract reinsured b…

Notwithstanding § 58-14-4 , if a life and health insurance guaranty association has made the election to succeed to the rights and obligations of the insolvent insurer under the contract of reinsurance, the reinsurer's liability to pay covered reinsured claims continues under the…

The reinsurance agreement may provide that the domiciliary liquidator of an insolvent ceding insurer shall give written notice to the reinsurer of the pendency of a claim against such ceding insurer on the contract reinsured within a reasonable time after such claim is filed in t…

The director may adopt rules pursuant to chapter 1-26 for the implementation and administration of the provisions of §§ 58-14-24 to 58-14-42 , inclusive. Source: SL 1992, ch 345 , § 17.

No insurer or reinsurer may continue to do business with an agent or broker negotiating, selling, placing or soliciting reinsurance after July 1, 1993, unless the agent or broker is in compliance with §§ 58-14-24 to 58-14-42 , inclusive. Sections 58-14-24 to 58-14-42 , inclusive,…

For the purposes of §§ 58-14-24 to 58-14-42 , inclusive, a qualified United States financial institution is an institution that: (1) Is organized or licensed under the laws of the United States or any state; (2) Is regulated, supervised, and examined by United States federal or s…

No person may act as a broker in this state if the broker maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation: (1) In this state, unless the broker is a licensed producer in this state; or …

No person, firm, association, or corporation may act as an agent: (1) For a reinsurer domiciled in this state, unless the agent is a licensed producer in this state; (2) In this state, if the agent maintains an office either directly or as a member or employee of a firm or associ…

A ceding insurer shall file copies of all reinsurance contracts with the director and shall promptly inform the director in writing of the cancellation or any other change of any of its reinsurance treaties or arrangements. Source: SL 1966, ch 111 , ch 4, § 10 (4); SL 1992, ch 34…

The original insured has no interest in a contract of reinsurance. Source: SL 1966, ch 111 , ch 32, § 5.

Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets any one of the requirements of § 58-14-8 , 58-14-9 , 58-14-10 , 58-14-11 , 58-14-14 , or 58-14-16.1 . I…

Credit shall be allowed if the reinsurance is ceded to an assuming insurer which is licensed to transact insurance or reinsurance in this state. Source: SL 1992, ch 344 , § 2.

Credit shall be allowed if the reinsurance is ceded to an assuming insurer that is accredited as a reinsurer in this state. For a reinsurer to be accredited, the reinsurer shall: (1) File with the director evidence of its submission to this state's jurisdiction; (2) Submit to thi…