31A-5-703. Nonrenewals, cancellations, or revisions of ceded reinsurance agreements.
(1) A nonrenewal, cancellation, or revision of ceded reinsurance agreements is not subject to the reporting requirements of Sectionif: 31A-5-701 the nonrenewal, cancellation, or revision is not material; or with respect to a property and casualty business, the insurer's total ceded written premium, on an annualized basis, is less than 10% of its total written premium for direct and assumed business; or with respect to a life, annuity, and accident and health business, the total reserve credit taken for business ceded, on an annualized basis, is less than 10% of the statutory reserve requirement prior to a cession. For purposes of this part, a material nonrenewal, cancellation, or revision is one that affects: with respect to a property and casualty business: more than 50% of the insurer's total ceded written premium; or more than 50% of the insurer's total ceded indemnity and loss adjustment reserves; with respect to a life, annuity, and accident and health business, more than 50% of the total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement; or with respect to either property and casualty or life, annuity, or accident and health business: an authorized reinsurer representing more than 10% of a total cession is replaced by one or more unauthorized reinsurers; or previously established collateral requirements have been reduced or waived as respects one or more unauthorized reinsurers representing collectively more than 10% of a total cession.
(2) The following information is required to be disclosed in any report filed pursuant to Sectionof a material nonrenewal, cancellation, or revision of a ceded reinsurance agreement: 31A-5-701 the effective date of the nonrenewal, cancellation, or revision; the description of the transaction with an identification of the initiator of the transaction; the purpose of, or reason for the transaction; and if applicable, the identity of the replacement reinsurers. Insurers are required to report all material nonrenewals, cancellations, or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the insurer: is part of a consolidated group of insurers that uses a pooling arrangement or 100% reinsurance agreement that affects the solvency and integrity of the insurer's reserves; and ceded substantially all of its direct and assumed business to the pool. An insurer is considered to have ceded substantially all of its direct and assumed business to a pool if: the insurer has less than $1,000,000 total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement; and the net income of the business not subject to the pooling arrangement represents less than 5% of the insurer's capital and surplus.