{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-5107","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-5107","heading":"Contract - Minimum provisions","body":"Transactions between an RM and the reinsurer the RM represents\n\nin such capacity shall be entered into only pursuant to a written\n\ncontract, specifying the responsibilities of each party, which shall\n\nbe approved by the board of directors of the reinsurer. At least\n\nthirty (30) days before such insurer assumes or cedes business\n\nthrough such producer, a true copy of the approved contract shall be\n\nfiled with the Commissioner for approval. The contract shall, at a\n\nminimum, contain provisions that:\n\n1. The reinsurer may terminate the contract for cause upon\n\nwritten notice to the RM. The reinsurer may suspend the authority\n\nof the RM to assume or cede business during the pendency of any\n\ndispute regarding the cause for termination;\n\n2. The RM shall render accounts to the reinsurer accurately\n\ndetailing all material transactions, including information necessary\n\nto support all commissions, charges and other fees received by, or\n\nowing to the RM, and remit all funds due under the contract to the\n\nreinsurer on not less than a monthly basis;\n\n3. All funds collected for the account of the reinsurer shall\n\nbe held by the RM in a fiduciary capacity in a bank which is a\n\nqualified U.S. financial institution. The RM may retain no more\n\nthan three (3) months estimated claims payments and allocated loss\n\nadjustment expenses. The RM shall maintain a separate bank account\n\nfor each reinsurer that the RM represents;\n\n4. For at least ten (10) years after expiration of each\n\ncontract of reinsurance transacted by the RM, the RM shall keep a\n\ncomplete record for each transaction showing:\n\na. the type of contract, limits, underwriting\n\nrestrictions, classes or risks and territory,\n\nb. period of coverage, including effective and expiration\n\ndates, cancellation provisions and notice required of\n\ncancellation, and disposition of outstanding reserves\n\non covered risks,\n\nc. reporting and settlement requirements of balances,\n\nd. rate used to compute the reinsurance premium,\n\ne. names and addresses of reinsurers,\n\nf. rates of all reinsurance commissions, including the\n\ncommissions on any retrocessions handled by the RM,\n\ng. related correspondence and memoranda,\n\nh. proof of placement,\n\ni. details regarding retrocessions handled by the RM, as\n\npermitted by Section 30 of this act, including the\n\nidentity of retrocessionaires and percentage of each\n\ncontract assumed or ceded,\n\nj. financial records, including but not limited to,\n\npremium and loss accounts, and\n\nk. if the RM places a reinsurance contract on behalf of a\n\nceding insurer:\n\n(1) directly from any assuming reinsurer, written\n\nevidence that the assuming reinsurer has agreed\n\nto assume the risk, or\n\n(2) if placed through a representative of the\n\nassuming reinsurer, other than an employee,\n\nwritten evidence that such reinsurer has\n\ndelegated binding authority to the\n\nrepresentative;\n\n5. The reinsurer shall have access and the right to copy all\n\naccounts and records maintained by the RM related to its business in\n\na form usable by the reinsurer;\n\n6. The contract shall not be assigned in whole or in part by\n\nthe RM;\n\n7. The RM shall comply with the written underwriting and rating\n\nstandards established by the insurer for the acceptance, rejection,\n\nor cession of all risks;\n\n8. Set forth the rates, terms, and purposes of commissions,\n\ncharges, and other fees which the RM may levy against the reinsurer;\n\n9. If the contract permits the RM to settle claims on behalf of\n\nthe reinsurer:\n\na. all claims shall be reported to the reinsurer in a\n\ntimely manner,\n\nb. a copy of the claim file shall be sent to the\n\nreinsurer at the request of the reinsurer as soon as\n\nit becomes known that the claim:\n\n(1) has the potential to exceed the lesser of an\n\namount determined by the Commissioner or the\n\nlimit set by the reinsurer,\n\n(2) involves a coverage dispute,\n\n(3) may exceed the claims settlement authority of the\n\nRM,\n\n(4) is open for more than six (6) months, or\n. a copy of the claim file shall be sent to the\n\nreinsurer at the request of the reinsurer as soon as\n\nit becomes known that the claim:\n\n(1) has the potential to exceed the lesser of an\n\namount determined by the Commissioner or the\n\nlimit set by the reinsurer,\n\n(2) involves a coverage dispute,\n\n(3) may exceed the claims settlement authority of the\n\nRM,\n\n(4) is open for more than six (6) months, or\n\n(5) is closed by payment of the lesser of an amount\n\nset by the Commissioner or an amount set by the\n\nreinsurer,\n\nc. all claim files shall be the joint property of the\n\nreinsurer and RM. However, upon an order of\n\nliquidation of the reinsurer such files shall become\n\nthe sole property of the reinsurer or its estate. The\n\nRM shall have reasonable access to and the right to\n\ncopy the files on a timely basis,\n\nd. any settlement authority granted to the RM may be\n\nterminated for cause upon the written notice by the\n\nreinsurer to the RM or upon the termination of the\n\ncontract. The reinsurer may suspend the settlement\n\nauthority during the pendency of the dispute regarding\n\nthe cause of termination;\n\n10. If the contract provides for a sharing of interim profits\n\nby the RM, the interim profits shall not be paid until one (1) year\n\nafter the end of each underwriting period for property business and\n\nfive (5) years after the end of each underwriting period for\n\ncasualty business and not until the adequacy of reserves on\n\nremaining claims has been verified pursuant to the provisions of the\n\nReinsurance Intermediary Act;\n\n11. The RM annually shall provide the reinsurer with a\n\nstatement of the financial condition of the RM prepared by an\n\nindependent certified accountant;\n\n12. The reinsurer shall periodically, at least semi-annually,\n\nconduct an on-site review of the underwriting and claims processing\n\noperations of the RM;\n\n13. The RM shall disclose to the reinsurer any relationship it\n\nhas with any insurer prior to ceding or assuming any business with\n\nsuch insurer pursuant to this contract; and\n\n14. The acts of the RM shall be deemed to be the acts of the\n\nreinsurer on whose behalf the RM is acting.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"d78c4149fa6a40cced15fafee8a6dd91af29a2b9111226ac60e6bc0f78f12e98","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-5106","next":"us-ok/okla.-stat.-tit.-36-36-5108"},"notice":"GroundRules: Original legal text. Not legal advice."}