58-14-29. Written contract between agent or broker and insurer or reinsurer. Any transaction between an agent or broker and the insurer or reinsurer that it represents may only be entered into pursuant to a written contract, specifying the responsibilities of each party. The contract shall, at a minimum, provide that:

(1) The insurer or reinsurer may terminate the contract for cause upon written notice to the agent or broker. A reinsurer may immediately suspend the authority of the agent or broker to assume or cede business during the pendency of any dispute regarding the cause for termination. Within thirty days of the termination of the contract with an agent or broker, the insurer or reinsurer shall provide written notification of the termination to the director;

(2) The agent or broker shall render accounts to the insurer and reinsurer accurately detailing all transactions, including information necessary to support all commissions, charges and other fees received by, or owed to, the agent or broker, and remit all funds due to the insurer or reinsurer within thirty days of receipt;

(3) All funds collected for the insurer's or reinsurer's account shall be held by the agent or broker in a fiduciary capacity in a bank which is a qualified United States financial institution. The agent may retain no more than three months estimated claims payments and allocated loss adjustment expenses. The agent shall maintain a separate bank account for each reinsurer that it represents;

(4) The agent or broker shall comply with §§ 58-14-30 and 58-14-31;

(5) The agent or broker shall comply with the written standards established by the insurer or reinsurer for the cession or retrocession of all risks; and

(6) The broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.Source: SL 1992, ch 345, § 6; SL 1994, ch 379, § 2.