Texas § IN.4152.153 - TRANSACTION RECORDS

§ IN.4152.153. TRANSACTION RECORDS

TRANSACTION RECORDS. (a) For at least 10 years after the expiration of each contract of reinsurance transacted by a broker, the broker shall maintain a complete record for each transaction that contains: (1) the type of contract, limits, underwriting restrictions, classes of risks, and territory; (2) the period of coverage, including effective and expiration dates, cancellation provisions, and notice requirements regarding cancellation; (3) reporting and settlement requirements regarding balances; (4) the rate used to compute the reinsurance premium; (5) the name and address of each ceding or assuming insurer; (6) the rates of all reinsurance commissions, including the commissions on any retrocessions handled by the broker; (7) related correspondence and memoranda; (8) proof of placement; (9) details regarding retrocessions handled by the broker, including the identity and address of each retrocessionaire and the respective percentage of each contract assumed or ceded; (10) financial records, including premium and loss accounts; and (11) if the broker procures a reinsurance contract on behalf of an authorized ceding insurer: (A) written evidence that the assuming insurer has agreed to assume the risk if the contract is procured directly from an assuming insurer; or (B) written evidence that the reinsurer has delegated binding authority to the representative who has agreed to assume the risk and that the representative is qualified to act as a manager under this chapter if the contract is procured through a representative of the assuming insurer, other than an employee. (b) Each insurer subject to a contract of reinsurance transacted by a broker is entitled to access to the information maintained by the broker under Subsection (a) and may copy and audit all accounts and records maintained by the broker related to the insurer's business. The broker shall maintain the information in a form usable by the insurer. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.