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   Colin Croly
   AIDA
   c/o 36 Blomfield Road
   Little Venice
   London W9 2PF
   UK

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PART I: REINSURANCE BROKERS

1. MARKET PRACTICE AND AGENCY RULES

(a) Do reinsurers deal directly with reinsureds as regards the placing of risks or any other matter relating to the contract, or are brokers employed in this process?

(b) If reinsurance brokers are used, are they the employees of either party or are they wholly independent agents?

(c) Are brokers engaged in placing reinsurance business also involved in placing direct business?

(d) To what extent do brokers take the initiative in obtaining reinsurance as a part of their role in placing direct business with insurers who may require reinsurance as a condition of participation? If reinsurance is arranged first, in what capacity does the broker act at that time?

(e) By whom are reinsurance brokers remunerated, and how is their remuneration calculated? Are there are disclosure requirements or other legal safeguards? Is the position the same for direct brokers?

(f) What are the legal consequences when a broker fails to communicate to the reinsurer material facts concerning the risk which are in the intermediary's possession, or misrepresents such facts? Is the position the same for direct brokers?

2 REGULATION

(a) Are reinsurance brokers subject to any form of statutory or self-regulation?

(b) Where there is regulation of reinsurance brokers, to what extent does it extend to:
(i) licensing
(ii) solvency
(iii) accounting requirements
(iv) qualifications, including post-qualification training
(v) general duties and the standard of care?

(c) What remedial regulatory action may be taken against a reinsurance broker

(d) To what extent are the positions of direct brokers and reinsurance brokers different?

3 FINANCIAL MATTERS

(a) Does a reinsurance broker, as a matter of law or practice, accept personal responsibility for the premium? If so, what is the effect of the broker's insolvency or default?

(b) Does a reinsurance broker, as a matter of law or practice, accept personal responsibility for paying losses to the reinsured on behalf of reinsurers? If so, what is the effect of the broker's insolvency or default?

(c) To what extent are the positions of direct brokers and reinsurance brokers different?

4 THE DUTIES OF REINSURANCE BROKERS

(a) What legal or market role, if any, do reinsurance brokers play in

(i) choice of reinsurer
(ii) placing reinsurance cover
(iii) the preparation of reinsurance wording, and
(iv) claims handling.

(b) Are there any general legal principles which govern the duty and standard of care which a reinsurance broker owes to the reinsured?

(c) To what extent are the positions of direct brokers and reinsurance brokers different? In particular, does the law distinguish between direct insureds and reinsureds as regards the degree of reliance which may be placed upon a broker in the event that the broker fails to perform his duties?

5 DELEGATION OF FUNCTIONS

(a) In what circumstances do producing reinsurance brokers delegate their functions to placing brokers?

(b) Are there any legal rules on
(i) the duties of a producing broker to the reinsured
(ii) the liability of a producing broker for the defaults of the placing broker
(iii) the direct liability of the placing broker to the reinsured.

(c) To what extent are the positions of direct brokers and reinsurance brokers different?

PART II: UNDERWRITING AGENTS

1. MARKET PRACTICE AND REGULATION

(a) To what extent do insurers and reinsurers use underwriting agents? In particular, is the use of pools common? If so, to what extent is membership international?

(b) Are there any regulatory controls on the operations of underwriting agents?

2. SPECIFIC FUNCTIONS

(a) What is the nature of the underwriting authority given to an underwriting agent, and how is the authority publicised in the market?

(b) In the case of a pool, is fronting used? If so, is the underwriting agent given any role in relation to the selection of fronting companies for any risk or is the matter regulated by contract between pool members?

(c) What additional functions are commonly delegated to underwriting agents (eg, settling claims, obtaining security in the form of reinsurance/retrocession for insurers and reinsurers)?

(d) Do underwriting agents deal with brokers when accepting and placing risks, or do they negotiate directly with other insurers and reinsurers?

(e) What are the legal consequenceswhen an underwriting agent makes a false statement of fails to disclose material facts when accepting or placing risks?

Reporter:
Prof. Robert Merkin
Moose Holt
Boughmore
Sidmouth
Devon. EX10 8SA