It is critically important for a Reinsurance Intermediary to be licensed in all states where such states require licensing to enable the Intermediary to immediately and legally work with any particular insurance or reinsurance company as a client. D. W. Van Dyke and Company of Connecticut, Inc., and DWVD Specialty Risks, Ltd. operate in accordance with the State of New York Insurance Department Regulation 29 and Regulation 98 and in accordance with the regulations of all states that require the licensing of reinsurance intermediaries.

View Standard Reinsurance Intermediary Questionnaire

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State of New York Insurance
Department Regulation 29

NEW YORK INSURANCE ADMINISTRATIVE CODE
TITLE 11. INSURANCE DEPARTMENT
CHAPTER II. AGENTS, BROKERS AND ADJUSTERS
PART 20. BROKERS AND AGENTS--GENERAL
REGULATION NOS. 9, 18 AND 29
Current with amendments received through New York State
Register Volume XXIV, Issue 3, January 16, 2002.

Section 20.3. FIDUCIARY RESPONSIBILITY OF INSURANCE AGENTS AND BROKERS; PREMIUM ACCOUNTS

(a) This section is issued for the purpose of interpreting, and facilitating compliance with, section 2120(a) and (c) of the Insurance Law.

(b) Every insurance agent and every insurance broker is responsible as a fiduciary for funds received by such agent or broker in such capacity; all such funds shall be held in accordance with the following paragraphs:

(1) An agent or broker who does not make immediate remittance to insurers and assureds of such funds shall deposit them in one or more appropriately identified accounts in a bank or banks duly authorized to do business in this State, from which no withdrawals shall be made except as hereinafter specified (any such account is hereinafter referred to as "a premium account").

(2) An agent or broker who makes immediate remittance to insurers and assureds of such funds need not maintain a premium account for such funds.

(3) Deposits in a premium account in excess of aggregate net premiums received but not remitted may be made to maintain a minimum balance, to guarantee the adequacy of the account, or to pay premiums due but uncollected (any such deposit is hereinafter referred to as "a voluntary deposit").

(4) No withdrawals from a premium account shall be made other than for payment of premiums to insurers, payment of return premiums to assureds, transfer to an operating account of (i) interest, if the principals have consented thereto in writing and (ii) commissions, withdrawal of voluntary deposits; provided, however, that no withdrawal may be made if the balance remaining in the premium account thereafter is less than aggregate net premiums received but not remitted.

(5) Deposit of a premium in a premium account shall not be construed as a commingling of the net premium and of the commission portion of the premium.

(6) In the case of an agent operating under an "account current system", maintenance at all times in one or more premium accounts of at least the net balance of premiums received but not remitted shall be construed as compliance with section 2120(a) and (c) of the Insurance Law, provided that the funds so held for each such principal are reasonably ascertainable from the agent's records.

(c) Except as hereinabove provided, an agent or broker shall not commingle any funds received or collected as agent or broker with his or its own funds or with funds held by him or it in any other capacity without the written consent of the person, firm or corporation for whom they are held in a fiduciary capacity.

(d) If any provision of this section or the application thereof to any person or circumstances is held unauthorized by law, the remainder of the section and the application of such provision to other persons or circumstances shall not be affected thereby.

(Sec. repealed, new filed Oct. 2, 1963; amd. filed Aug. 19, 1991 eff. Sept. 4, 1991.)

State of New York Insurance
Department Regulation 98

NEW YORK INSURANCE ADMINISTRATIVE CODE
TITLE 11. INSURANCE DEPARTMENT
CHAPTER II. AGENTS, BROKERS AND ADJUSTERS
PART 32. REINSURANCE INTERMEDIARIES
REGULATION NO. 98
Current with amendments received through New York State
Register Volume XXIV, Issue 3, January 16, 2002.

Section 32.4. GENERAL PROVISIONS

(a) The term reinsurance as used in this Part shall apply to all forms of reinsurance coverage.

(b) Before a ceding insurer of its representative pays any premiums or fees to any reinsurance intermediary, such ceding insurer shall obtain evidence that the requirements of section 32.1 (a)--(c), (e)--(f) of this Part have been complied with.

(c) The provisions of this Part apply to any person, firm, association or corporation acting as a reinsurance intermediary in this State.

(d) In the case of an insurance agent or insurance broker acting as a reinsurance intermediary in this State, such insurance agent or insurance broker shall be required to maintain a premium and loss account(s) separate from its premium account(s), required pursuant to Regulation 29 (11 NYCRR Part 20).

(e) The provisions of this Part shall not apply to:
(1) the manager of a group, association or organization of insurers which engage in joint underwriting or joint reinsurance pursuant to the provisions of section 186-a of the Insurance Law, provided, such manager applies to and is granted an exemption by the superintendent; and

(2) underwriting managers designated by Underwriting Members of the New York Insurance Exchange, Inc., provided that:

(i) such designation shall have been filed with the New York Insurance Exchange, Inc. in its register of Approved Underwriting Managers;

(ii) the New York Insurance Exchange, Inc. adopts rules to accomplish the intent and purposes of this Part; and
(iii) this exemption shall not apply to any retrocessions handled by such underwriting manager of the New York Insurance Exchange, Inc.

(f) If any provision of this Part or the application thereof to any person or circumstances is held unauthorized by law, the remainder of this Part and the application of such provision to other persons or circumstances shall not be affected thereby.

(Sec. filed Sept. 21, 1982 eff. Oct. 1, 1982.)