{"data":{"id":"us-nc/n.c.-gen.-stat.-58-9-11","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 58-9-11","heading":"Broker and insurer transactions.","body":"(a)\tTransactions between a broker and the insurer it represents as a broker shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall include provisions to the effect that:\n(1)\tThe insurer may terminate the broker's authority at any time.\n(2)\tThe broker will render accounts to the insurer that accurately detail all material transactions, including information necessary to support all commissions, charges, and other fees received by or owing to the broker and will remit all funds due to the insurer within 30 days after receipt by the broker.\n(3)\tAll funds collected for the insurer's account will be held by the broker in a fiduciary capacity in a qualified United States financial institution.\n(4)\tThe broker will comply with this Article.\n(5)\tThe broker will comply with the written standards established by the insurer for the cession or retrocession of all risks.\n(6)\tThe broker will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.\n(7)\tThe broker will annually provide the insurer with an audited statement of the broker's financial condition, which statement will be prepared by an independent certified public accountant.\n(8)\tThe insurer will have access and the right to copy and audit all accounts and records maintained by the broker related to its business, in a form usable by the insurer.\n(9)\tFor at least 10 years after the expiration of each contract of reinsurance transacted by the broker, the broker will keep a complete record for each transaction showing:\na.\tThe type of contract, limits, underwriting restrictions, classes or risks, and territory;\nb.\tPeriod of coverage, including effective and expiration dates, cancellation provisions, and notice required of cancellation;\nc.\tReporting and settlement requirements of balances;\nd.\tRate or rates used to compute the reinsurance premium;\ne.\tNames and addresses of assuming reinsurers;\nf.\tRates of all reinsurance commissions, including the commissions on any retrocession handled by the broker;\ng.\tRelated correspondence and memoranda;\nh.\tProof of placement;\ni.\tDetails regarding retrocessions handled by the broker, including the identity of retrocessionaires and percentage of each contract assumed or ceded;\nj.\tFinancial records, including premium and loss accounts; and\nk.\tWhen the broker procures a reinsurance contract on behalf of a licensed ceding insurer:\n1.\tDirectly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or\n2.\tIf placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.\n(b)\tAn insurer shall not engage the services of any person to act as a broker on its behalf unless the person is licensed under G.S. 58-9-6 or exempted under this Article. An insurer shall not employ an individual who is employed by a broker with which it transacts business, unless the broker is under common control with the insurer under Article 19 of this Chapter. (1993, c. 452, s. 21; 2001-223, s. 10.2.)","path":["Chapter 58. Insurance.","Article 9. Reinsurance Intermediaries."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_58/GS_58-9-11.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:06:53Z","sha256":"63ed74f9f7a674d5d43dd9840df0e924d815409da219afb6ec2ea22832561db2","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-58-9-10","next":"us-nc/n.c.-gen.-stat.-58-9-15"},"notice":"GroundRules: Original legal text. Not legal advice."}