§ 27-2-18-6 — "Material nonrenewal, cancellation, or revision of a ceded reinsurance agreement" defined; reportable material revisions

Indiana § 27-2-18-6

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 2: POWERS AND DUTIES OF INSURERS
• Ch. 18: Disclosure of Material Transactions

Text

(a) As used in this chapter, "material
nonrenewal, cancellation, or revision of a ceded reinsurance
agreement" has the following meanings:
(1) When used in connection with property and casualty business,
including accident and sickness insurance business written by a
property and casualty insurer, the term means a nonrenewal,
cancellation, or revision that affects:
(A) more than fifty percent (50%) of the insurer's total ceded
written premium; or
(B) more than fifty percent (50%) of the insurer's total ceded
indemnity and loss adjustment reserves.
(2) When used in connection with life insurance or accident and
sickness insurance business, the term means a nonrenewal,
cancellation, or revision that affects 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.
(b) The following events constitute a material revision of a ceded
reinsurance agreement for property and casualty insurance, life
insurance, or accident and sickness insurance business meeting the
requirements of subsection (a) and must be reported:
(1) An authorized reinsurer representing more than ten percent
(10%) of a total cession is replaced by one (1) or more
unauthorized reinsurers.
(2) 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.
(c) A nonrenewal, cancellation, or revision of a ceded reinsurance
agreement is not material and a filing is not required under subsection
(a) or (b) for the following:
(1) In connection with property and casualty business, including
accident and sickness insurance business written by a property
and casualty insurer, the insurer's total ceded written premium
represents, on an annualized basis, less than ten percent (10%) of
the insurer's total written premiums for direct and assumed
business.
(2) In connection with life insurance or accident and sickness
insurance business, the total reserve credit taken for business
ceded represents, on an annualized basis, less than ten percent
(10%) of the statutory reserve requirement before any cession.

Legislative History

As added by P.L.251-1995, SEC.17.