                                 CODE OF VIRGINIA

REQUIRED CONTRACT PROVISIONS; REINSURANCE INTERMEDIARY BROKERS (§ 38.2-1349)

Transactions between a reinsurance intermediary broker and the insurer it
represents in such capacity shall only be entered into pursuant to a written
authorization, specifying the responsibilities of each party. The authorization
shall, at a minimum, provide that:

1. The insurer may terminate the reinsurance intermediary broker&#8217;s
authority at any time;

2. The reinsurance intermediary broker will render accounts to the insurer
accurately detailing all material transactions, including information necessary
to support all commissions, charges and other fees received by, or owing to, the
reinsurance intermediary broker, and remit all funds due to the insurer within
thirty calendar days of receipt;

3. All funds collected for the insurer&#8217;s account will be held by the
reinsurance intermediary broker in a fiduciary capacity in a bank that is a
qualified United States financial institution as defined in &#xA7; 38.2-1347;

4. The reinsurance intermediary broker will comply with &#xA7; 38.2-1350;

5. The reinsurance intermediary broker will comply with the written standards
established by the insurer for the cession or retrocession of all risks; and

6. The reinsurance intermediary broker will disclose to the insurer any
relationship with any reinsurer to which business will be ceded or retroceded.

HISTORY: 2001, c. 706.