58-5-151. Reporting material nonrenewal, cancellation or revision.
144 words·~1 min read·
/sd/title-58/chapter-58-5/58-5-151A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subject to the criteria provided in § 58-5-150 , a report shall be filed without regard to which party has initiated the nonrenewal, cancellation or revision of ceded reinsurance whenever one or more of the following conditions exist:
(1)The entire cession has been cancelled, 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;
(2)An authorized or accredited reinsurer has been replaced on an existing cession by an unauthorized reinsurer; or
(3)Collateral requirements previously established for unauthorized reinsurers have been reduced.
Subject to the materiality criteria, for purposes of subdivisions
(2)and (3), a report shall be filed if the result of the revision affects more than ten percent of the cession.