Section 23(2) in The Insurance Regulatory And Development Authority (Insurance Brokers) Regulations, 2002
(2)In the case of reinsurance contracts, it may be agreed between the parties specifically or as part of international market practices that the licensed reinsurance broker or composite broker can collect the premium and remit to the reinsurer and/or collect the claims due from the reinsurer to be passed on to the insured. In these circumstances the money collected by the licenses insurance broker shall be death with in the following manner:-(a)he shall act as the trustee of the insurance money that he is required to handle in order to discharge his function as a reinsurance broker and for the purposes of this regulation it shall be deemed that a payment made to the reinsurance broker shall be considered as payment made to the reinsurer;(b)ensure that "insurance money" is held in an "Insurance Bank Account" with one or more of the Scheduled Banks or with such other institutions as may be approved by the Authority;(c)give written notice to, and receive written confirmation from, a bank, or other institution that he is not entitled to combine the account with any other account, or to exercise any right of set-off, charge or lien against money in that account;(d)ensure that all monies received from or on behalf of an insured is paid into the "Insurance Bank Account" which remains in the "Insurance Bank Account" to remain in deposit until it is transferred on to the reinsurer or to the direct insurer;(e)ensure that any refund of premium which may become due to a direct insurer on account of the cancellation of a policy or alteration in its terms and conditions or otherwise shall be paid by the reinsurer directly to the direct insurer;(f)interest on recovery/payment received shall be for the benefit of the direct insurer or reinsurer;(g)only remove from the "Insurance Bank Account" charges, fees or commission earned and interest received from any funds comprising the account;(h)take immediate steps to restore the required position if at any time he becomes aware of any deficiency in the required "segregated amount".
