2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 521D - DISCLOSURE OF MATERIAL TRANSACTIONS
521D.4 - REPORT OF NONRENEWAL, CANCELLATION, REVISION OF CEDED REINSURANCE AGREEMENTS -- INFORMATION REQUIRED -- SCOPE.

        521D.4  REPORT OF NONRENEWAL, CANCELLATION, REVISION
      OF CEDED REINSURANCE AGREEMENTS -- INFORMATION REQUIRED -- SCOPE.
         1.  A nonrenewal, cancellation, or revision of a ceded reinsurance
      agreement need not be reported pursuant to section 521D.2 if the
      nonrenewal, cancellation, or revision is not material.  For purposes
      of this chapter, a material nonrenewal, cancellation, or revision of
      a ceded reinsurance agreement is one that does the following:
         a.  For property and casualty business including accident and
      health business when written as such, affects more than fifty percent
      of an insurer's ceded written premium on an annualized basis as
      indicated in the insurer's most recently filed statutory statement.
         b.  For life, annuity, and accident and health business,
      affects more than fifty percent of the total reserve credit taken for
      business ceded on an annualized basis as indicated in the insurer's
      most recently filed statutory statement.
         2.  Notwithstanding subsection 1, a filing is not required if the
      insurer's ceded written premium represents, on an annualized basis,
      less than ten percent of direct plus assumed written premium, or the
      total reserve credit taken for business ceded represents, on an
      annualized basis, less than ten percent of the statutory reserve
      requirement prior to any cession.
         3.  A report required to be filed pursuant to this chapter is to
      be filed regardless of who has initiated the nonrenewal,
      cancellation, or revision of the ceded reinsurance agreement whenever
      one or more of the following conditions exist:
         a.  The entire cession has been canceled, nonrenewed, or
      revised and ceded indemnity and loss adjustment expense reserves,
      after any nonrenewal, cancellation, or revision, represent less than
      fifty percent of the comparable reserves that would have been ceded
      had the nonrenewal, cancellation, or revision not occurred.
         b.  An authorized or accredited reinsurer has been replaced on
      an existing cession by an unauthorized reinsurer.
         c.  Collateral requirements previously established for
      unauthorized reinsurers have been reduced.
         Subject to the materiality criteria, for purposes of paragraphs
      "b" and "c", a report shall be filed if the result of the
      revision affects more than ten percent of the cession.
         4.  A report of a material nonrenewal, cancellation, or revision
      of a ceded reinsurance agreement required to be filed shall include
      all of the following:
         a.  The effective date of the nonrenewal, cancellation, or
      revision.
         b.  The description of the transaction including the
      identification of the initiator of the transaction.
         c.  The purpose of, or reason for, the transaction.
         d.  The identity of the replacement reinsurers, if applicable.

         5.  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 which utilizes an intercompany pooling agreement or
      arrangement or a one hundred percent reinsurance agreement under
      which the ceding company has ceded substantially one hundred percent
      of its direct and assumed business to a pool.  An insurer is deemed
      to have ceded substantially one hundred percent of its direct and
      assumed business to a pool if the insurer has less than one million
      dollars of total direct plus assumed written premiums during a
      calendar year that are not subject to the pooling agreement or
      arrangement and the net income of the business not subject to the
      pooling agreement or arrangement represents less than five percent of
      the insurer's capital and surplus.  If a group of insurers reports on
      a consolidated basis, the report shall identify the individual
      insurers that are members of the group.  

         94 Acts, ch 1176, §19