KRS 304.9-735: Reinsurers required to engage services of only licensed reinsurance

managers.

(1) A reinsurer shall not engage the services of any person, firm, association, or

corporation to act as a reinsurance intermediary manager on its behalf unless the

person is licensed as required by KRS 304.9-705(2).

(2) The reinsurer shall annually obtain a copy of statements of the financial condition of

each reinsurance intermediary manager which the reinsurer has engaged prepared by

an independent certified accountant in a form acceptable to the commissioner.

(3) If a reinsurance intermediary manager establishes loss reserves, the reinsurer shall

annually obtain the opinion of an actuary attesting to the adequacy of loss reserves

established for losses incurred and outst anding on business produced by the

reinsurance intermediary manager. This opinion shall be in addition to any other

required loss reserve certification.

(4) Binding authority for all retrocessional contracts or participation in reinsurance

syndicates shall rest with an officer of the reinsurer who shall not be affiliated with

the reinsurance intermediary manager.

(5) Within thirty (30) days of termination of a contract with a reinsurance intermediary

manager, the reinsurer shall provide written notification of such termination to the

commissioner.

(6) A reinsurer shall not appoint to its board of directors any officer, director,

employee, controlling shareholder, or subproducer of its reinsurance intermediary

manager. This subsection shall not apply to relationships governed by Subtitle 37 of

this chapter or, if applicable, any provisions of Subtitle 3 of this chapter on producer

controlled insurers.