(215 ILCS 100/45)
(from Ch. 73, par. 1645)
Duties of reinsurers utilizing the services of a reinsurance
(a) A reinsurer shall not engage the services of any person, firm,
association, or corporation to act as an intermediary manager on its behalf
unless the person is licensed as required by Section 10.
(b) The reinsurer shall annually obtain a copy of statements, audited by
an independent certified public accountant in a form acceptable to the
Director, of the financial condition of each intermediary manager that the
reinsurer has contracted.
(c) If an 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 outstanding on
business produced by the intermediary manager. This opinion shall be in
addition to any other required loss reserve certification.
(d) 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 intermediary manager.
(e) Within 30 days of termination of a contract with an intermediary
manager, the reinsurer shall provide written notification of termination to the Director.
(f) A reinsurer shall not appoint to its board of directors, any
officer, director, employee, controlling shareholder, or subproducer of its
intermediary manager. This subsection shall not apply to relationships
governed by the Holding Company Act.
(Source: P.A. 98-756, eff. 7-16-14.)