Ken Levine discusses the role and regulation of reinsurance intermediaries, along with licensure and duties of insurers and reinsurers, in the FORC Journal of Insurance Law and Regulation. Such professionals serve as brokers between ceding insurers and reinsurers and facilitate contracts that transfer risk. Legal challenges may include regulatory compliance, fiduciary duties, and contractual ambiguities. Intermediaries must navigate a patchwork of state and federal regulations, which may vary significantly and create compliance burdens. Intermediaries can be exposed to liability if they fail to properly disclose terms or act in the best interest of their clients.

The role of reinsurance intermediaries is evolving. Intermediaries are not only expected to broker deals but also to provide strategic insights and risk assessments. Clear documentation and communication in reinsurance transactions to avoid disputes and litigation is crucial, and intermediaries should stay well-informed of legal developments and maintain robust internal controls to mitigate risk and ensure ethical conduct in their operations.

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