South Dakota § 58-14-30 - Records of reinsurance contracts.

§ 58-14-30. Records of reinsurance contracts.

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;

(2)    Period of coverage, including effective and expiration dates, cancellation provisions, and notice required for cancellation. The agent shall also maintain a record of the disposition of outstanding reserves on covered risks;

(3)    Reporting and settlement requirements of balances;

(4)    Rate used to compute the reinsurance premium;

(5)    Names and addresses of reinsurers;

(6)    Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the agent or broker;

(7)    Related correspondence and memoranda;

(8)    Proof of placement;

(9)    Details regarding retrocessions handled by the agent or broker including the identity of retrocessionaires and percentage of each contract assumed or ceded. Retrocessions for the agent are also subject to § 58-14-36;

(10)    Financial records, including but not limited to, premium and loss accounts; and

(11)    When the agent or broker procures a reinsurance contract on behalf of a licensed ceding insurer:

(a)    Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or

(b)    If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.

Source: SL 1992, ch 345, § 7.