2005 Idaho Code - 41-347 — NONRENEWALS, CANCELLATIONS OR REVISIONS OF CEDED REINSURANCE AGREEMENTS

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 3
                          AUTHORIZATION OF INSURERS
                           AND GENERAL REQUIREMENTS
    41-347.  NONRENEWALS, CANCELLATIONS OR REVISIONS OF CEDED REINSURANCE
AGREEMENTS. (1) Materiality and scope. No nonrenewals, cancellations or
revisions of ceded reinsurance agreements need be reported pursuant to section
41-345, Idaho Code, if the nonrenewals, cancellations or revisions are not
material. For purposes of sections 41-345 through 41-347, Idaho Code, a
material nonrenewal, cancellation or revision is one that affects:
    (a)  As respects property-casualty business, including accident and health
    business written by a property-casualty insurer:
         (i)   More than fifty percent (50%) of the insurer's total ceded
         written premium; or
         (ii)  More than fifty percent (50%) of the insurer's total ceded
         indemnity and loss adjustment reserves.
    (b)  As respects life, annuity and accident and health business more than
    fifty percent (50%) of the total reserve credit taken for business ceded,
    on an annualized basis, as indicated in the insurer's most recent annual
    statement.
    (c)  As respects either property-casualty or life, annuity and accident
    and health business, either of the following events shall constitute a
    material revision which must be reported:
         (i)   An authorized reinsurer representing more than ten percent
         (10%) of a total cession is replaced by one (1) or more unauthorized
         reinsurers; or
         (ii)  Previously established collateral requirements have been
         reduced or waived as respects one (1) or more unauthorized reinsurers
         representing collectively more than ten percent (10%) of a total
         cession.
    (2)  No filing shall be required, however, if:
    (a)  As respects property-casualty business, including accident and health
    business written by a property-casualty insurer, the insurer's total ceded
    written premium represents, on an annualized basis, less than ten percent
    (10%) of it [its] total written premium for direct and assumed business;
    or
    (b)  As respects life, annuity and accident and health business, the total
    reserve credit taken for business ceded represents, on an annualized
    basis, less than ten percent (10%) of the statutory reserve requirement
    prior to any cession.
    (3)  Information to be reported.
    (a)  The following information is required to be disclosed in any report
    of a material nonrenewal, cancellation or revision of ceded reinsurance
    agreements:
         (i)   Effective date of the nonrenewal, cancellation or revision;
         (ii)  The description of the transaction with an identification of
         the initiator thereof;
         (iii) Purpose of, or reason for, the transaction; and
         (iv)  If applicable, the identity of the replacement reinsurers.
    (b)  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 a pooling arrangement or one hundred percent
    (100%) reinsurance agreement that affects the solvency and integrity of
    the insurer's reserves and the insurer ceded substantially all of its
    direct and assumed business to the pool. An insurer is deemed to have
    ceded substantially all of its direct and assumed business to a pool if
    the insurer has less than one million dollars ($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 five percent (5%) of the
    insurer's capital and surplus.