§ 26.1-10.1-03 — Nonrenewals, cancellations, or revisions of ceded reinsurance agreements

North Dakota § 26.1-10.1-03

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-10.1: Asset and Agreement Reports

Text

agreements.
1. Materiality and scope.
a. Nonrenewals, cancellations, or revisions of ceded reinsurance agreements or
new ceded reinsurance agreements need not be reported under section
26.1-10.1-01 if the nonrenewals, cancellations, or revisions of ceded reinsurance
agreements or new ceded reinsurance agreements are not material. For
purposes of this chapter, a material nonrenewal, cancellation, or revision of a
ceded reinsurance agreement or a material new ceded reinsurance agreement is
one that affects:
(1) As respects property and casualty business, including accident and health
business written by a property and casualty insurer:
(a) More than fifty percent of the insurer's total ceded written premium; or
(b) More than fifty percent of the insurer's total ceded indemnity and loss
adjustment reserves.
(2) As respects life, annuity, and accident and health business, more than fifty
percent of the total reserve credit taken for business ceded, on an
annualized basis, as indicated in the insurer's most recent annual statement.
(3) As respects either property and casualty or life, annuity, and accident and
health business, either of the following events constitutes a material revision
that must be reported:
(a) An authorized reinsurer representing more than ten percent of a total
cession is replaced by one or more unauthorized reinsurers; or
(b) Previously established collateral requirements have been reduced or
waived as respects one or more unauthorized reinsurers representing
collectively more than ten percent of a total cession.
b. However, filing is not required if:
(1) As respects 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 percent
of its total written premium for direct and assumed business; or
(2) 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 of the statutory reserve requirement prior to any cession.
2. 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 or
material new ceded reinsurance agreements:
(1) Effective date of the nonrenewal, cancellation, revision, or new agreement;
(2) The description of the transaction with an identification of the initiator of the
transaction;
(3) Purpose of, or reason for, the transaction; and

(4) If applicable, the identity of the replacement reinsurers.
b. Insurers are required to report all material nonrenewals, cancellations, or
revisions of ceded reinsurance agreements or material new ceded reinsurance
agreements on a nonconsolidated basis unless the insurer is part of a
consolidated group of insurers that utilizes a pooling arrangement or one hundred
percent 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 total direct plus assumed written premiums during a calendar year
which 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
of the insurer's capital and surplus.