Okla. Stat. tit. 36, § 36-5107

Transactions between an RM and the reinsurer the RM represents

in such capacity shall be entered into only pursuant to a written

contract, specifying the responsibilities of each party, which shall

be approved by the board of directors of the reinsurer. At least

thirty (30) days before such insurer assumes or cedes business

through such producer, a true copy of the approved contract shall be

filed with the Commissioner for approval. The contract shall, at a

minimum, contain provisions that:

1. The reinsurer may terminate the contract for cause upon

written notice to the RM. The reinsurer may suspend the authority

of the RM to assume or cede business during the pendency of any

dispute regarding the cause for termination;

2. The RM shall render accounts to the reinsurer accurately

detailing all material transactions, including information necessary

to support all commissions, charges and other fees received by, or

owing to the RM, and remit all funds due under the contract to the

reinsurer on not less than a monthly basis;

3. All funds collected for the account of the reinsurer shall

be held by the RM in a fiduciary capacity in a bank which is a

qualified U.S. financial institution. The RM may retain no more

than three (3) months estimated claims payments and allocated loss

adjustment expenses. The RM shall maintain a separate bank account

for each reinsurer that the RM represents;

4. For at least ten (10) years after expiration of each

contract of reinsurance transacted by the RM, the RM shall keep a

complete record for each transaction showing:

a. the type of contract, limits, underwriting

restrictions, classes or risks and territory,

b. period of coverage, including effective and expiration

dates, cancellation provisions and notice required of

cancellation, and disposition of outstanding reserves

on covered risks,

c. reporting and settlement requirements of balances,

d. rate used to compute the reinsurance premium,

e. names and addresses of reinsurers,

f. rates of all reinsurance commissions, including the

commissions on any retrocessions handled by the RM,

g. related correspondence and memoranda,

h. proof of placement,

i. details regarding retrocessions handled by the RM, as

permitted by Section 30 of this act, including the

identity of retrocessionaires and percentage of each

contract assumed or ceded,

j. financial records, including but not limited to,

premium and loss accounts, and

Oklahoma Statutes - Title 36. Insurance Page 1031

k. if the RM places a reinsurance contract on behalf of a

ceding insurer:

(1) directly from any assuming reinsurer, written

evidence that the assuming reinsurer has agreed

to assume the risk, or

(2) if placed through a representative of the

assuming reinsurer, other than an employee,

written evidence that such reinsurer has

delegated binding authority to the

representative;

5. The reinsurer shall have access and the right to copy all

accounts and records maintained by the RM related to its business in

a form usable by the reinsurer;

6. The contract shall not be assigned in whole or in part by

the RM;

7. The RM shall comply with the written underwriting and rating

standards established by the insurer for the acceptance, rejection,

or cession of all risks;

8. Set forth the rates, terms, and purposes of commissions,

charges, and other fees which the RM may levy against the reinsurer;

9. If the contract permits the RM to settle claims on behalf of

the reinsurer:

a. all claims shall be reported to the reinsurer in a

timely manner,

b. a copy of the claim file shall be sent to the

reinsurer at the request of the reinsurer as soon as

it becomes known that the claim:

(1) has the potential to exceed the lesser of an

amount determined by the Commissioner or the

limit set by the reinsurer,

(2) involves a coverage dispute,

(3) may exceed the claims settlement authority of the

RM,

(4) is open for more than six (6) months, or
. a copy of the claim file shall be sent to the

reinsurer at the request of the reinsurer as soon as

it becomes known that the claim:

(1) has the potential to exceed the lesser of an

amount determined by the Commissioner or the

limit set by the reinsurer,

(2) involves a coverage dispute,

(3) may exceed the claims settlement authority of the

RM,

(4) is open for more than six (6) months, or

(5) is closed by payment of the lesser of an amount

set by the Commissioner or an amount set by the

reinsurer,

c. all claim files shall be the joint property of the

reinsurer and RM. However, upon an order of

liquidation of the reinsurer such files shall become

the sole property of the reinsurer or its estate. The

RM shall have reasonable access to and the right to

copy the files on a timely basis,

d. any settlement authority granted to the RM may be

terminated for cause upon the written notice by the

reinsurer to the RM or upon the termination of the

contract. The reinsurer may suspend the settlement

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authority during the pendency of the dispute regarding

the cause of termination;

10. If the contract provides for a sharing of interim profits

by the RM, the interim profits shall not be paid until one (1) year

after the end of each underwriting period for property business and

five (5) years after the end of each underwriting period for

casualty business and not until the adequacy of reserves on

remaining claims has been verified pursuant to the provisions of the

Reinsurance Intermediary Act;

11. The RM annually shall provide the reinsurer with a

statement of the financial condition of the RM prepared by an

independent certified accountant;

12. The reinsurer shall periodically, at least semi-annually,

conduct an on-site review of the underwriting and claims processing

operations of the RM;

13. The RM shall disclose to the reinsurer any relationship it

has with any insurer prior to ceding or assuming any business with

such insurer pursuant to this contract; and

14. The acts of the RM shall be deemed to be the acts of the

reinsurer on whose behalf the RM is acting.