Reinsurance Intermediary Broker
A Reinsurance Intermediary Broker is a person who negotiates a contract of reinsurance between a reinsured and reinsurer on behalf of the reinsured and who receives a commission for placement and other services rendered. The term does not include the ceding insurer.
Note: Concurrent licensing as both a Reinsurance Intermediary Broker and a Reinsurance Intermediary Manager is allowed as long as the licenses are held for separate reinsurers.
License Required
A person shall not act as a Reinsurance Intermediary Broker unless licensed as a producer or a Reinsurance Intermediary in this state pursuant to NRS 681A.420. A licensed attorney acting in a professional capacity is not required to be licensed as a Reinsurance Intermediary.
A license issued to a firm or association authorizes all of the members of the firm or association and any designated employees to act as intermediaries. Those persons must be named in the application and the supplemental documents (Biographical Affidavit) provided at the time of application.
A license issued to a corporation authorizes all of the officers and any designated employees and directors of the corporation to act as intermediaries on behalf of the corporation. Those persons must be named in the application and the supplemental documents (Biographical Affidavit) provided at the time of application.
License Term
A license as a Reinsurance Intermediary Broker is valid for three years from the date of issuance.
Fees
All fees paid to the Nevada Division of Insurance are nonrefundable.
Initial Application total: $185
This fee consists of the $60 Administration and Enforcement fee and the $125 licensing fee.
Triennial Renewal total: $185
This fee consists of the $60 Administration and Enforcement fee and the $125 licensing fee.
How to Apply
An applicant for a license as a Reinsurance Intermediary Broker must:
Submit a paper application to the Division’s Carson City Office;
Comply with all requirements of NRS 681A.250 to 681A.580, inclusive;
Remit any applicable fees.
If a nonresident, the applicant shall:
Designate the Commissioner as agent for service of process;
Furnish the Commissioner with the name and address of a resident of Nevada upon whom notices or orders of the Commissioner or process affecting the nonresident reinsurance intermediary may be served; and
Promptly notify the Commissioner in writing of every change in the applicant’s designated agent for service of process. The change is not effective until acknowledged by the Commissioner.
How to Renew
A license as a Reinsurance Intermediary Broker may be renewed by:
Submitting a paper renewal application to the Division’s Carson City Office;
Remitting any applicable fees.
Additional Requirements
Pursuant to NRS 681A.460:
A transaction between a broker for reinsurance and the insurer he or she represents may only be entered into by written agreement. The agreement must specify the responsibilities of each party.
The insurer may terminate the authority of the broker for reinsurance at any time.
The broker for reinsurance shall:
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 broker for reinsurance; and
Remit all money due to the insurer within 30 days after receipt.
All money collected for the account of the insurer must be held by the broker for reinsurance in a fiduciary capacity in a bank or credit union which is a qualified financial institution.
The broker for reinsurance shall comply with the written standards established by the insurer for the cession or retrocession of all risks.
The broker for reinsurance shall disclose to the insurer any relationship with any reinsurer to which insurance will be ceded or retroceded.
Pursuant to NRS 681A.470:
For 10 years after expiration of each contract of reinsurance transacted by the broker for reinsurance, he or she shall keep a complete record for each transaction, including evidence of:
The type of contract, limits, underwriting restrictions, classes or risks and territory;
The period of coverage, including effective and expiration dates and the provisions concerning cancellation and notice of cancellation;
The requirements for reporting and settling balances;
The rate used to compute the reinsurance premium;
The names and addresses of assuming reinsurers;
The rates of all commissions for reinsurance, including the commissions on any retrocessions handled by the broker for reinsurance;
Any related correspondence and memoranda;
Proof of placement;
Details regarding retrocessions handled by the broker for reinsurance, including the identity of retrocessionaires and the percentage of each contract assumed or ceded;
Financial records, including accounts of premium and loss; and
If the broker for reinsurance procures a contract of reinsurance on behalf of a licensed ceding insurer:
Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
Through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
A broker for reinsurance shall allow an insurer to have access to and to copy and audit all accounts and records maintained by him or her related to its contract.
Pursuant to NRS 681A.480:
An insurer shall not engage the services of any person to act as a broker for reinsurance on its behalf unless the person is licensed pursuant to NRS 681A.430.
An insurer may not employ a person who is employed by a broker for reinsurance with whom it transacts business, unless the broker for reinsurance is under common control with the insurer within the meaning of chapter 692C of NRS.
The insurer shall annually obtain a copy of statements of the financial condition of each broker for reinsurance with which it transacts business.
All Intermediaries are subject to examination by the Division pursuant to NRS 681A.560.
Legal Authority
Reinsurance Intermediaries are regulated by the provisions of chapter 681A of the Nevada Revised Statutes (NRS) and the chapter 681A of the Nevada Administrative Code (NAC).