Sec. 38a-67b. Nonrenewals, cancellations or revisions, reporting requirement waived, when. Information required to be disclosed.
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/ct/title-38a/chapter-698-insurers/38a-67b·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)(1) Nonrenewals, cancellations or revisions of ceded reinsurance agreements need not be reported pursuant to section 38a-67 if the nonrenewals, cancellations or revisions are not material. For purposes of sections 38a-67 to 38a-67b , inclusive, a material nonrenewal, cancellation or revision is one that affects:
(A)With respect to property and casualty business, including accident and health business written by a property and casualty insurer:
(i)More than fifty per cent of an insurer's ceded written premium; or
(ii)more than fifty per cent of the insurer's total ceded indemnity and loss adjustment reserves;
(B)with respect to life, annuity and accident and health business: More than fifty per cent of the total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement;
(C)with respect either to property and casualty or life, annuity and accident and health business, either of the following events shall constitute a material revision which shall be reported:
(i)An authorized reinsurer representing more than ten per cent of a total cession is replaced by one or more unauthorized reinsurers; or
(ii)previously established collateral requirements have been reduced or waived with respect to one or more unauthorized reinsurers representing collectively more than ten per cent of a total cession.
(2)However, no filing shall be required if:
(A)With respect to property and casualty business, including accident and health business written by a property and casualty insurer: The insurer's total ceded written premium represents, on an annualized basis, less than ten per cent of its total written premium for direct and assumed business; or
(B)with respect to life, annuity and accident and health business: The total reserve credit taken for business ceded represents, on an annualized basis, less than ten per cent of the statutory reserve requirement prior to any cession.
(1)The following information shall be disclosed in any report of a material nonrenewal, cancellation or revision of ceded reinsurance agreements:
(A)Effective date of the nonrenewal, cancellation or revision;
(B)The description of the transaction with an identification of the initiator thereof;
(C)Purpose of, or reason for, the transaction; and
(D)If applicable, the identity of the replacement reinsurers.
(2)Insurers shall 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 per cent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer has 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 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 per cent of the insurer's capital and surplus.