                                 CODE OF VIRGINIA

BOOKS AND RECORDS; REINSURANCE INTERMEDIARY BROKERS (§ 38.2-1350)

A. For at least ten years after expiration of each contract of reinsurance
transacted by the reinsurance intermediary broker, the reinsurance intermediary
broker will 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 of cancellation;

   3. Reporting and settlement requirements of balances;

   4. Rate used to compute the reinsurance premium;

   5. Names and addresses of assuming reinsurers;

   6. Rates of all reinsurance commissions, including the commissions on any
   retrocessions handled by the reinsurance intermediary broker;

   7. Related correspondence and memoranda;

   8. Proof of placement;

   9. Details regarding retrocessions handled by the reinsurance intermediary
   broker including the identity of retrocessionaires and percentage of each
   contract assumed or ceded;

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

   11. When the reinsurance intermediary 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 such reinsurer has delegated binding
   authority to the representative.

B. The insurer will have reasonable access to and the right to copy and audit
all accounts and records maintained by the reinsurance intermediary broker
related to its business in a form usable by the Commission.

HISTORY: 2001, c. 706.