(215 ILCS 100/15)
(from Ch. 73, par. 1615)
Required contract provisions; reinsurance intermediary brokers.
Transactions between an intermediary broker and the insurer it represents
in that capacity shall be entered into only under a written contract,
specifying the responsibilities of each party. The contract shall, at a
minimum, contain provisions that:
(1) The insurer may terminate the intermediary
broker's authority at any time.
(2) The intermediary broker will render accounts 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 intermediary broker and remit all funds due to the insurer within 30 days of receipt.
(3) All funds collected for the insurer's account
will be held by the intermediary broker in a fiduciary capacity in a bank that is a qualified U.S. financial institution as defined in this Act.
(4) The intermediary broker will comply with Section
(5) The intermediary broker will comply with the
written standards established by the insurer for the cession or retrocession of all risks.
(6) The intermediary broker will disclose to the
insurer any relationship with any reinsurer to which business will be ceded or retroceded.
(Source: P.A. 87-108.)