{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1352.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1352.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1352.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1352.html"}],"law_id":85577,"edition_id":1,"section_id":85577,"structure_id":14993,"section_number":"38.2-1352","catch_line":"Required contract provisions; reinsurance intermediary managers","history":"2001, c. 706.","full_text":"Transactions between a reinsurance intermediary manager and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party, which shall be approved by the reinsurer’s board of directors. At least thirty calendar days before such reinsurer assumes or cedes business through such reinsurance intermediary manager, a true copy of the approved contract shall be filed with the Commission for approval. The contract shall, at a minimum, provide that:\n\n1\n\nThe reinsurer may terminate the contract for cause upon written notice to the reinsurance intermediary manager. The reinsurer may immediately suspend the authority of the reinsurance intermediary manager to assume or cede business during the pendency of any dispute regarding the cause for termination.2\n\nThe reinsurance intermediary manager will render timely accounts to the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing to the reinsurance intermediary manager, and remit all funds due under the contract to the reinsurer on not less than a monthly basis.3\n\nAll funds collected for the reinsurer’s account will be held by the reinsurance intermediary manager in a fiduciary capacity in a bank that is a qualified United States financial institution as defined in § 38.2-1347. The reinsurance intermediary manager may retain no more than three months’ estimated claims payments and allocated loss adjustment expenses. The reinsurance intermediary manager shall maintain a separate bank account for each reinsurer that it represents.4\n\nFor at least ten years after expiration of each contract of reinsurance transacted by the reinsurance intermediary manager, the reinsurance intermediary manager will keep a complete record for each transaction showing:\n\t\t\ta. The type of contract, limits, underwriting restrictions, classes or risks and territory;\n\t\t\tb. Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation, and disposition of outstanding reserves on covered risks;\n\t\t\tc. Reporting and settlement requirements of balances;\n\t\t\td. Rate used to compute the reinsurance premium;\n\t\t\te. Names and addresses of assuming reinsurers;\n\t\t\tf. Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance manager;\n\t\t\tg. Related correspondence and memoranda;\n\t\t\th. Proof of placement;\n\t\t\ti. Details regarding retrocessions handled by the reinsurance intermediary manager, as permitted by subsection D of \u00a7 38.2-1354, including the identity of retrocessionaires and percentage of each contract assumed or ceded;\n\t\t\tj. Financial records, including but not limited to, premium and loss accounts; and\n\t\t\tk. When the reinsurance intermediary manager places a reinsurance contract on behalf of a ceding insurer:1\n\nDirectly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or2\n\nIf placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative.5\n\nThe reinsurer will have reasonable access to and the right to copy all accounts and records maintained by the reinsurance intermediary manager related to its business in a form usable by the reinsurer.6\n\nThe contract cannot be assigned in whole or in part by the reinsurance intermediary manager.7\n\nThe reinsurance intermediary manager will comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection or cession of all risks.8\n\nSets forth the rates, terms and purposes of commissions, charges and other fees that the reinsurance intermediary manager may levy against the reinsurer.9\n\nIf the contract permits the reinsurance intermediary manager to settle claims on behalf of the reinsurer:\n\t\t\ta. All claims will be reported to the reinsurer in a timely manner;\n\t\t\tb. A copy of the claim file will be sent to the reinsurer at its request or as soon as it becomes known that the claim:1\n\nHas the potential to exceed one percent of the insurer’s surplus to policyholders as of December 31 of the last completed calendar year, an amount set by the reinsurer, or any other amount deemed appropriate by the Commission, whichever is less;2\n\nInvolves a coverage dispute;3\n\nMay exceed the reinsurance intermediary manager’s claims settlement authority;4\n\nIs open for more than six months; or5\n\nIs closed by payment of an amount exceeding one percent of the insurer’s surplus to policyholders as of December 31 of the last completed calendar year, an amount set by the reinsurer, or any other amount deemed appropriate by the Commission, whichever is less;\n\t\t\t\tc. All claim files will be the joint property of the reinsurer and reinsurance intermediary manager. However, upon entry of order of liquidation or the appointment of a receiver for the liquidation of the reinsurer, such files shall become the sole property of the reinsurer or its estate; the reinsurance intermediary manager shall have reasonable access to and the right to copy the files on a timely basis;\n\t\t\t\td. Any settlement authority granted to the reinsurance intermediary manager may be terminated for cause upon the reinsurer’s written notice to the reinsurance intermediary manager or upon the termination of the contract. The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination.10\n\nWhere electronic claims files are in existence, the contract must address the timely transmission of the data.11\n\nIf the contract provides for a sharing of interim profits by the reinsurance intermediary manager, such interim profits will not be paid until one year after the end of each underwriting period for property business and five years after the end of each underwriting period for casualty business, or a later period set by the Commission for specified lines of insurance, and not until the adequacy of reserves on remaining claims has been verified pursuant to subsection C of § 38.2-1354.12\n\nThe reinsurance intermediary manager will annually provide the reinsurer with a current financial statement prepared by an independent certified accountant in a form acceptable to the Commission.13\n\nThe reinsurer shall, at least semiannually, conduct an on-site review of the underwriting and claims processing operations of the reinsurance intermediary manager.14\n\nThe reinsurance intermediary manager will disclose to the reinsurer any relationship it has with any insurer prior to negotiating any business with such insurer pursuant to this contract.15\n\nWithin the scope of its actual or apparent authority, the acts of the reinsurance intermediary manager shall be deemed to be the acts of the reinsurer on whose behalf it is acting.","order_by":null,"text":{"0":{"id":306554,"text":"Transactions between a reinsurance intermediary manager and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party, which shall be approved by the reinsurer’s board of directors. At least thirty calendar days before such reinsurer assumes or cedes business through such reinsurance intermediary manager, a true copy of the approved contract shall be filed with the Commission for approval. The contract shall, at a minimum, provide that:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":306555,"text":"The reinsurer may terminate the contract for cause upon written notice to the reinsurance intermediary manager. The reinsurer may immediately suspend the authority of the reinsurance intermediary manager to assume or cede business during the pendency of any dispute regarding the cause for termination.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":306556,"text":"The reinsurance intermediary manager will render timely accounts to the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by, or owing to the reinsurance intermediary manager, and remit all funds due under the contract to the reinsurer on not less than a monthly basis.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":306557,"text":"All funds collected for the reinsurer’s account will be held by the reinsurance intermediary manager in a fiduciary capacity in a bank that is a qualified United States financial institution as defined in § 38.2-1347. The reinsurance intermediary manager may retain no more than three months’ estimated claims payments and allocated loss adjustment expenses. The reinsurance intermediary manager shall maintain a separate bank account for each reinsurer that it represents.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":306558,"text":"For at least ten years after expiration of each contract of reinsurance transacted by the reinsurance intermediary manager, the reinsurance intermediary manager will keep a complete record for each transaction showing:\n\t\t\ta. The type of contract, limits, underwriting restrictions, classes or risks and territory;\n\t\t\tb. Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation, and disposition of outstanding reserves on covered risks;\n\t\t\tc. Reporting and settlement requirements of balances;\n\t\t\td. Rate used to compute the reinsurance premium;\n\t\t\te. Names and addresses of assuming reinsurers;\n\t\t\tf. Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance manager;\n\t\t\tg. Related correspondence and memoranda;\n\t\t\th. Proof of placement;\n\t\t\ti. Details regarding retrocessions handled by the reinsurance intermediary manager, as permitted by subsection D of \u00a7 38.2-1354, including the identity of retrocessionaires and percentage of each contract assumed or ceded;\n\t\t\tj. Financial records, including but not limited to, premium and loss accounts; and\n\t\t\tk. When the reinsurance intermediary manager places a reinsurance contract on behalf of a ceding insurer:","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"41"},"5":{"id":306559,"text":"Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or","type":"section","prefixes":["4","1"],"prefix":"1","entire_prefix":"41","prefix_anchor":"41","level":2,"prior_prefix":"4","next_prefix":"42"},"6":{"id":306560,"text":"If placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative.","type":"section","prefixes":["4","2"],"prefix":"2","entire_prefix":"42","prefix_anchor":"42","level":2,"prior_prefix":"41","next_prefix":"5"},"7":{"id":306561,"text":"The reinsurer will have reasonable access to and the right to copy all accounts and records maintained by the reinsurance intermediary manager related to its business in a form usable by the reinsurer.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"42","next_prefix":"6"},"8":{"id":306562,"text":"The contract cannot be assigned in whole or in part by the reinsurance intermediary manager.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"9":{"id":306563,"text":"The reinsurance intermediary manager will comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection or cession of all risks.","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"10":{"id":306564,"text":"Sets forth the rates, terms and purposes of commissions, charges and other fees that the reinsurance intermediary manager may levy against the reinsurer.","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"11":{"id":306565,"text":"If the contract permits the reinsurance intermediary manager to settle claims on behalf of the reinsurer:\n\t\t\ta. All claims will be reported to the reinsurer in a timely manner;\n\t\t\tb. A copy of the claim file will be sent to the reinsurer at its request or as soon as it becomes known that the claim:","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8","next_prefix":"91"},"12":{"id":306566,"text":"Has the potential to exceed one percent of the insurer’s surplus to policyholders as of December 31 of the last completed calendar year, an amount set by the reinsurer, or any other amount deemed appropriate by the Commission, whichever is less;","type":"section","prefixes":["9","1"],"prefix":"1","entire_prefix":"91","prefix_anchor":"91","level":2,"prior_prefix":"9","next_prefix":"92"},"13":{"id":306567,"text":"Involves a coverage dispute;","type":"section","prefixes":["9","2"],"prefix":"2","entire_prefix":"92","prefix_anchor":"92","level":2,"prior_prefix":"91","next_prefix":"93"},"14":{"id":306568,"text":"May exceed the reinsurance intermediary manager’s claims settlement authority;","type":"section","prefixes":["9","3"],"prefix":"3","entire_prefix":"93","prefix_anchor":"93","level":2,"prior_prefix":"92","next_prefix":"94"},"15":{"id":306569,"text":"Is open for more than six months; or","type":"section","prefixes":["9","4"],"prefix":"4","entire_prefix":"94","prefix_anchor":"94","level":2,"prior_prefix":"93","next_prefix":"95"},"16":{"id":306570,"text":"Is closed by payment of an amount exceeding one percent of the insurer’s surplus to policyholders as of December 31 of the last completed calendar year, an amount set by the reinsurer, or any other amount deemed appropriate by the Commission, whichever is less;\n\t\t\t\tc. All claim files will be the joint property of the reinsurer and reinsurance intermediary manager. However, upon entry of order of liquidation or the appointment of a receiver for the liquidation of the reinsurer, such files shall become the sole property of the reinsurer or its estate; the reinsurance intermediary manager shall have reasonable access to and the right to copy the files on a timely basis;\n\t\t\t\td. Any settlement authority granted to the reinsurance intermediary manager may be terminated for cause upon the reinsurer’s written notice to the reinsurance intermediary manager or upon the termination of the contract. The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination.","type":"section","prefixes":["9","5"],"prefix":"5","entire_prefix":"95","prefix_anchor":"95","level":2,"prior_prefix":"94","next_prefix":"10"},"17":{"id":306571,"text":"Where electronic claims files are in existence, the contract must address the timely transmission of the data.","type":"section","prefixes":["10"],"prefix":"10","entire_prefix":"10","prefix_anchor":"10","level":1,"prior_prefix":"95","next_prefix":"11"},"18":{"id":306572,"text":"If the contract provides for a sharing of interim profits by the reinsurance intermediary manager, such interim profits will not be paid until one year after the end of each underwriting period for property business and five years after the end of each underwriting period for casualty business, or a later period set by the Commission for specified lines of insurance, and not until the adequacy of reserves on remaining claims has been verified pursuant to subsection C of § 38.2-1354.","type":"section","prefixes":["11"],"prefix":"11","entire_prefix":"11","prefix_anchor":"11","level":1,"prior_prefix":"10","next_prefix":"12"},"19":{"id":306573,"text":"The reinsurance intermediary manager will annually provide the reinsurer with a current financial statement prepared by an independent certified accountant in a form acceptable to the Commission.","type":"section","prefixes":["12"],"prefix":"12","entire_prefix":"12","prefix_anchor":"12","level":1,"prior_prefix":"11","next_prefix":"13"},"20":{"id":306574,"text":"The reinsurer shall, at least semiannually, conduct an on-site review of the underwriting and claims processing operations of the reinsurance intermediary manager.","type":"section","prefixes":["13"],"prefix":"13","entire_prefix":"13","prefix_anchor":"13","level":1,"prior_prefix":"12","next_prefix":"14"},"21":{"id":306575,"text":"The reinsurance intermediary manager will disclose to the reinsurer any relationship it has with any insurer prior to negotiating any business with such insurer pursuant to this contract.","type":"section","prefixes":["14"],"prefix":"14","entire_prefix":"14","prefix_anchor":"14","level":1,"prior_prefix":"13","next_prefix":"15"},"22":{"id":306576,"text":"Within the scope of its actual or apparent authority, the acts of the reinsurance intermediary manager shall be deemed to be the acts of the reinsurer on whose behalf it is acting.","type":"section","prefixes":["15"],"prefix":"15","entire_prefix":"15","prefix_anchor":"15","level":1,"prior_prefix":"14"}},"ancestry":[{"id":14993,"edition_id":1,"name":"Licensing of Reinsurance Intermediaries","identifier":"8","label":"article","depth":3,"order_by":1,"parent_id":13289,"metadata":{},"date_created":"2026-06-26 03:51:22","date_modified":"2026-06-26 03:51:22","permalink":{"id":211811,"object_type":"structure","relational_id":14993,"identifier":"8","token":"38.2\/13\/8","url":"\/38.2\/13\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13289,"edition_id":1,"name":"Reports, Reserves and Examinations, Insurance Holding Companies, Reinsurance Intermediaries, and Managing General Agents","identifier":"13","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":211347,"object_type":"structure","relational_id":13289,"identifier":"13","token":"38.2\/13","url":"\/38.2\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":58348,"structure_id":14993,"section_number":"38.2-1347","catch_line":"Definitions","url":"\/38.2-1347\/","token":"38.2\/13\/8\/38.2-1347","metadata":false},{"id":73342,"structure_id":14993,"section_number":"38.2-1348","catch_line":"License requirements","url":"\/38.2-1348\/","token":"38.2\/13\/8\/38.2-1348","metadata":false},{"id":57200,"structure_id":14993,"section_number":"38.2-1349","catch_line":"Required contract provisions; reinsurance intermediary brokers","url":"\/38.2-1349\/","token":"38.2\/13\/8\/38.2-1349","metadata":false},{"id":75604,"structure_id":14993,"section_number":"38.2-1350","catch_line":"Books and records; reinsurance intermediary brokers","url":"\/38.2-1350\/","token":"38.2\/13\/8\/38.2-1350","metadata":false},{"id":65484,"structure_id":14993,"section_number":"38.2-1351","catch_line":"Duties of insurers utilizing the services of a reinsurance intermediary broker","url":"\/38.2-1351\/","token":"38.2\/13\/8\/38.2-1351","metadata":false},{"id":85577,"structure_id":14993,"section_number":"38.2-1352","catch_line":"Required contract provisions; reinsurance intermediary managers","url":"\/38.2-1352\/","token":"38.2\/13\/8\/38.2-1352","metadata":false},{"id":82758,"structure_id":14993,"section_number":"38.2-1353","catch_line":"Prohibited acts","url":"\/38.2-1353\/","token":"38.2\/13\/8\/38.2-1353","metadata":false},{"id":58188,"structure_id":14993,"section_number":"38.2-1354","catch_line":"Duties of reinsurers utilizing the services of a reinsurance intermediary manager","url":"\/38.2-1354\/","token":"38.2\/13\/8\/38.2-1354","metadata":false},{"id":87094,"structure_id":14993,"section_number":"38.2-1355","catch_line":"Examination authority","url":"\/38.2-1355\/","token":"38.2\/13\/8\/38.2-1355","metadata":false},{"id":59046,"structure_id":14993,"section_number":"38.2-1356","catch_line":"Penalties and liabilities; grounds for placing on probation, refusal to issue or renew, revocation, or suspension of license","url":"\/38.2-1356\/","token":"38.2\/13\/8\/38.2-1356","metadata":false},{"id":58156,"structure_id":14993,"section_number":"38.2-1357","catch_line":"Requirement to report to Commission","url":"\/38.2-1357\/","token":"38.2\/13\/8\/38.2-1357","metadata":false}],"previous_section":{"id":65484,"structure_id":14993,"section_number":"38.2-1351","catch_line":"Duties of insurers utilizing the services of a reinsurance intermediary broker","url":"\/38.2-1351\/","token":"38.2\/13\/8\/38.2-1351","metadata":false},"next_section":{"id":82758,"structure_id":14993,"section_number":"38.2-1353","catch_line":"Prohibited acts","url":"\/38.2-1353\/","token":"38.2\/13\/8\/38.2-1353","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1352\/","history_text":"

This law was first created in 2001. The record of its establishment is cataloged in chapter 706<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":[{"id":58348,"section_number":"38.2-1347","catch_line":"Definitions","order_by":null,"url":"\/38.2-1347\/"},{"id":58188,"section_number":"38.2-1354","catch_line":"Duties of reinsurers utilizing the services of a reinsurance intermediary manager","order_by":null,"url":"\/38.2-1354\/"}],"permalink":{"id":211833,"object_type":"law","relational_id":85577,"identifier":"38.2-1352","token":"38.2\/13\/8\/38.2-1352","url":"\/38.2-1352\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1352\/","token":"38.2\/13\/8\/38.2-1352","dublin_core":{"Title":"Required contract provisions; reinsurance intermediary managers","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1352","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Transactions between a reinsurance intermediary manager<\/span> and the reinsurer<\/span> it represents in such capacity shall only be entered into pursuant to a written contract<\/span>, specifying the responsibilities of each party<\/span>, which shall be approved by the reinsurer<\/span>’s board of directors. At least thirty calendar days before such reinsurer<\/span> assumes or cedes business through such reinsurance intermediary manager<\/span>, a true copy of the approved contract<\/span> shall be filed with the Commission<\/span> for approval. The contract<\/span> shall, at a minimum, provide that:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The reinsurer<\/span> may terminate the contract<\/span> for cause upon written notice to the reinsurance intermediary manager<\/span>. The reinsurer<\/span> may immediately suspend the authority of the reinsurance intermediary manager<\/span> to assume or cede business during the pendency of any dispute regarding the cause for termination. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The reinsurance intermediary manager<\/span> will render timely accounts to the reinsurer<\/span> accurately detailing all material<\/span> transactions, including information necessary to support all commissions<\/span>, charges and other fees received by, or owing to the reinsurance intermediary manager<\/span>, and remit all funds due under the contract<\/span> to the reinsurer<\/span> on not less than a monthly basis. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> All funds collected for the reinsurer<\/span>’s account will be held by the reinsurance intermediary manager<\/span> in a fiduciary capacity in a bank that is a qualified United States financial institution<\/span> as defined in § 38.2-1347<\/a>. The reinsurance intermediary manager<\/span> may retain no more than three months’ estimated claims payments and allocated loss adjustment expenses. The reinsurance intermediary manager<\/span> shall maintain a separate bank account for each reinsurer<\/span> that it represents. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> For at least ten years after expiration of each contract<\/span> of reinsurance transacted by the reinsurance intermediary manager<\/span>, the reinsurance intermediary manager<\/span> will keep a complete record for each transaction showing:\n\t\t\ta. The type of contract<\/span>, limits, underwriting restrictions, classes or risks and territory;\n\t\t\tb. Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation, and disposition<\/span> of outstanding reserves on covered risks;\n\t\t\tc. Reporting and settlement<\/span> requirements of balances;\n\t\t\td. Rate<\/span> used to compute the reinsurance premium;\n\t\t\te. Names and addresses of assuming reinsurers<\/span>;\n\t\t\tf. Rates<\/span><\/span> of all reinsurance commissions<\/span>, including the commissions<\/span> on any retrocessions handled by the reinsurance manager;\n\t\t\tg. Related correspondence and memoranda;\n\t\t\th. Proof of placement;\n\t\t\ti. Details regarding retrocessions handled by the reinsurance intermediary manager<\/span>, as permitted by subsection D of \u00a7 38.2-1354<\/a>, including the identity of retrocessionaires and percentage of each contract<\/span> assumed or ceded;\n\t\t\tj. Financial records, including but not limited to, premium and loss accounts; and\n\t\t\tk. When the reinsurance intermediary manager<\/span> places a reinsurance contract<\/span> on behalf of a ceding insurer<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Directly from any assuming reinsurer<\/span>, written evidence<\/span> that the assuming reinsurer<\/span> has agreed to assume the risk; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If placed through a representative of the assuming reinsurer<\/span>, other than an employee, written evidence<\/span> that such reinsurer<\/span> has delegated binding authority to the representative. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The reinsurer<\/span> will have reasonable access to and the right to copy all accounts and records maintained by the reinsurance intermediary manager<\/span> related to its business in a form usable by the reinsurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The contract<\/span> cannot be assigned in whole or in part by the reinsurance intermediary manager<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The reinsurance intermediary manager<\/span> will comply with the written underwriting and rating standards established by the insurer<\/span> for the acceptance, rejection or cession of all risks. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Sets forth the rates<\/span><\/span>, terms and purposes of commissions<\/span>, charges and other fees that the reinsurance intermediary manager<\/span> may levy<\/span> against the reinsurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> If the contract<\/span> permits the reinsurance intermediary manager<\/span> to settle claims on behalf of the reinsurer<\/span>:\n\t\t\ta. All claims will be reported to the reinsurer<\/span> in a timely manner;\n\t\t\tb. A copy of the claim file will be sent to the reinsurer<\/span> at its request or as soon as it becomes known that the claim: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Has the potential to exceed one percent of the insurer<\/span>’s surplus to policyholders<\/span> as of December 31 of the last completed calendar year, an amount set by the reinsurer<\/span>, or any other amount deemed appropriate by the Commission<\/span>, whichever is less; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Involves a coverage dispute; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> May exceed the reinsurance intermediary manager<\/span>’s claims settlement<\/span> authority; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Is open for more than six months; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Is closed by payment of an amount exceeding one percent of the insurer<\/span>’s surplus to policyholders<\/span> as of December 31 of the last completed calendar year, an amount set by the reinsurer<\/span>, or any other amount deemed appropriate by the Commission<\/span>, whichever is less;\n\t\t\t\tc. All claim files will be the joint property of the reinsurer<\/span> and reinsurance intermediary manager<\/span>. However, upon entry of order<\/span> of liquidation<\/span> or the appointment of a receiver for the liquidation<\/span> of the reinsurer<\/span>, such files shall become the sole property of the reinsurer<\/span> or its estate; the reinsurance intermediary manager<\/span> shall have reasonable access to and the right to copy the files on a timely basis;\n\t\t\t\td. Any settlement<\/span> authority granted to the reinsurance intermediary manager<\/span> may be terminated for cause upon the reinsurer<\/span>’s written notice to the reinsurance intermediary manager<\/span> or upon the termination of the contract<\/span>. The reinsurer<\/span> may suspend the settlement<\/span> authority during the pendency of the dispute regarding the cause of termination. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Where electronic claims files are in existence, the contract<\/span> must address the timely transmission of the data. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> If the contract<\/span> provides for a sharing of interim profits by the reinsurance intermediary manager<\/span>, such interim profits will not be paid until one year after the end of each underwriting period for property business and five years after the end of each underwriting period for casualty business, or a later period set by the Commission<\/span> for specified lines of insurance<\/span>, and not until the adequacy of reserves on remaining claims has been verified pursuant to subsection C of § 38.2-1354<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> The reinsurance intermediary manager<\/span> will annually provide the reinsurer<\/span> with a current financial statement prepared by an independent certified accountant in a form acceptable to the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> The reinsurer<\/span> shall, at least semiannually, conduct an on-site review of the underwriting and claims processing operations of the reinsurance intermediary manager<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> The reinsurance intermediary manager<\/span> will disclose to the reinsurer<\/span> any relationship it has with any insurer<\/span> prior to negotiating any business with such insurer<\/span> pursuant to this contract<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

15.<\/span> Within the scope of its actual or apparent authority, the acts of the reinsurance intermediary manager<\/span> shall be deemed to be the acts of the reinsurer<\/span> on whose behalf it is acting. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREQUIRED CONTRACT PROVISIONS; REINSURANCE INTERMEDIARY MANAGERS (\u00a7 38.2-1352)\n\nTransactions between a reinsurance intermediary manager and the reinsurer it\nrepresents in such capacity shall only be entered into pursuant to a written\ncontract, specifying the responsibilities of each party, which shall be approved\nby the reinsurer’s board of directors. At least thirty calendar days\nbefore such reinsurer assumes or cedes business through such reinsurance\nintermediary manager, a true copy of the approved contract shall be filed with\nthe Commission for approval. The contract shall, at a minimum, provide that:\n\n1. The reinsurer may terminate the contract for cause upon written notice to the\nreinsurance intermediary manager. The reinsurer may immediately suspend the\nauthority of the reinsurance intermediary manager to assume or cede business\nduring the pendency of any dispute regarding the cause for termination.\n\n2. The reinsurance intermediary manager will render timely accounts to the\nreinsurer accurately detailing all material transactions, including information\nnecessary to support all commissions, charges and other fees received by, or\nowing to the reinsurance intermediary manager, and remit all funds due under the\ncontract to the reinsurer on not less than a monthly basis.\n\n3. All funds collected for the reinsurer’s account will be held by the\nreinsurance intermediary manager in a fiduciary capacity in a bank that is a\nqualified United States financial institution as defined in § 38.2-1347.\nThe reinsurance intermediary manager may retain no more than three months’\nestimated claims payments and allocated loss adjustment expenses. The\nreinsurance intermediary manager shall maintain a separate bank account for each\nreinsurer that it represents.\n\n4. For at least ten years after expiration of each contract of reinsurance\ntransacted by the reinsurance intermediary manager, the reinsurance intermediary\nmanager will keep a complete record for each transaction showing:\n\t\t\ta. The type of contract, limits, underwriting restrictions, classes or risks\nand territory;\n\t\t\tb. Period of coverage, including effective and expiration dates, cancellation\nprovisions and notice required of cancellation, and disposition of outstanding\nreserves on covered risks;\n\t\t\tc. Reporting and settlement requirements of balances;\n\t\t\td. Rate used to compute the reinsurance premium;\n\t\t\te. Names and addresses of assuming reinsurers;\n\t\t\tf. Rates of all reinsurance commissions, including the commissions on any\nretrocessions handled by the reinsurance manager;\n\t\t\tg. Related correspondence and memoranda;\n\t\t\th. Proof of placement;\n\t\t\ti. Details regarding retrocessions handled by the reinsurance intermediary\nmanager, as permitted by subsection D of \u00a7 38.2-1354, including the identity of\nretrocessionaires and percentage of each contract assumed or ceded;\n\t\t\tj. Financial records, including but not limited to, premium and loss\naccounts; and\n\t\t\tk. When the reinsurance intermediary manager places a reinsurance contract on\nbehalf of a ceding insurer:\n\n 1. Directly from any assuming reinsurer, written evidence that the assuming\n reinsurer has agreed to assume the risk; or\n\n 2. If placed through a representative of the assuming reinsurer, other than an\n employee, written evidence that such reinsurer has delegated binding authority\n to the representative.\n\n5. The reinsurer will have reasonable access to and the right to copy all\naccounts and records maintained by the reinsurance intermediary manager related\nto its business in a form usable by the reinsurer.\n\n6. The contract cannot be assigned in whole or in part by the reinsurance\nintermediary manager.\n\n7. The reinsurance intermediary manager will comply with the written\nunderwriting and rating standards established by the insurer for the acceptance,\nrejection or cession of all risks.\n\n8. Sets forth the rates, terms and purposes of commissions, charges and other\nfees that the reinsurance intermediary manager may levy against the reinsurer.\n\n9. If the contract permits the reinsurance intermediary manager to settle claims\non behalf of the reinsurer:\n\t\t\ta. All claims will be reported to the reinsurer in a timely manner;\n\t\t\tb. A copy of the claim file will be sent to the reinsurer at its request or\nas soon as it becomes known that the claim:\n\n 1. Has the potential to exceed one percent of the insurer’s surplus to\n policyholders as of December 31 of the last completed calendar year, an amount\n set by the reinsurer, or any other amount deemed appropriate by the\n Commission, whichever is less;\n\n 2. Involves a coverage dispute;\n\n 3. May exceed the reinsurance intermediary manager’s claims settlement\n authority;\n\n 4. Is open for more than six months; or\n\n 5. Is closed by payment of an amount exceeding one percent of the\n insurer’s surplus to policyholders as of December 31 of the last\n completed calendar year, an amount set by the reinsurer, or any other amount\n deemed appropriate by the Commission, whichever is less;\n \t\t\t\tc. All claim files will be the joint property of the reinsurer and\n reinsurance intermediary manager. However, upon entry of order of liquidation\n or the appointment of a receiver for the liquidation of the reinsurer, such\n files shall become the sole property of the reinsurer or its estate; the\n reinsurance intermediary manager shall have reasonable access to and the right\n to copy the files on a timely basis;\n \t\t\t\td. Any settlement authority granted to the reinsurance intermediary\n manager may be terminated for cause upon the reinsurer’s written notice\n to the reinsurance intermediary manager or upon the termination of the\n contract. The reinsurer may suspend the settlement authority during the\n pendency of the dispute regarding the cause of termination.\n\n10. Where electronic claims files are in existence, the contract must address\nthe timely transmission of the data.\n\n11. If the contract provides for a sharing of interim profits by the reinsurance\nintermediary manager, such interim profits will not be paid until one year after\nthe end of each underwriting period for property business and five years after\nthe end of each underwriting period for casualty business, or a later period set\nby the Commission for specified lines of insurance, and not until the adequacy\nof reserves on remaining claims has been verified pursuant to subsection C of\n§ 38.2-1354.\n\n12. The reinsurance intermediary manager will annually provide the reinsurer\nwith a current financial statement prepared by an independent certified\naccountant in a form acceptable to the Commission.\n\n13. The reinsurer shall, at least semiannually, conduct an on-site review of the\nunderwriting and claims processing operations of the reinsurance intermediary\nmanager.\n\n14. The reinsurance intermediary manager will disclose to the reinsurer any\nrelationship it has with any insurer prior to negotiating any business with such\ninsurer pursuant to this contract.\n\n15. Within the scope of its actual or apparent authority, the acts of the\nreinsurance intermediary manager shall be deemed to be the acts of the reinsurer\non whose behalf it is acting.\n\nHISTORY: 2001, c. 706.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}