KRS 304.9-710: Written authorization between reinsurance intermediary broker and an

insurer.

Transactions between a reinsurance intermediary broker and the insurer it represents in

that capacity shall only be entered into pursuant to a written authorization specif ying the

responsibilities of each party. The authorization shall, at a minimum, contain provisions

that:

(1) The insurer may terminate the reinsurance intermediary broker's authority at any

time;

(2) The reinsurance intermediary broker shall render account s 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 withi n thirty (30) days of

receipt;

(3) All funds collected for the insurer's account shall be held by the reinsurance

intermediary broker in a fiduciary capacity in a bank which is a qualified United

States financial institution;

(4) The reinsurance intermediary broker shall comply with KRS 304.9-715;

(5) The reinsurance intermediary broker shall comply with the written standards

established by the insurer for the cession or retrocession of all risks; and

(6) The reinsurance intermediary broker shall disclose t o the insurer any relationship

with any reinsurer to which business will be ceded or retroceded.