§ 26-3-403 — Nonrenewals, cancellations or revisions of ceded reinsurance agreements

Wyoming § 26-3-403

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 3: AUTHORIZATION OF INSURERS AND

Text

(a) No nonrenewal, cancellation or revision of ceded
reinsurance agreements need be reported pursuant to W.S.
26-3-401 if the nonrenewal, cancellation or revision is not
material. For purposes of this article, a material nonrenewal,
cancellation or revision is one that affects for property and
casualty business, including accident and health business when
written as such, more than fifty percent (50%) of an insurer's
ceded written premium, or for 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 recently filed statutory
statement. No filing is required if the insurer's ceded written
premium or the total reserve credit taken for business ceded
represents, on an annualized basis, less than ten percent (10%)
of direct plus assumed written premium or ten percent (10%) of
the statutory reserve requirement prior to any cession,
respectively.
(b) Subject to subsection (a) of this section, a report
shall be filed without regard to which party has initiated the
nonrenewal, cancellation or revision of ceded reinsurance
whenever one (1) or more of the following conditions exist:
(i) The entire cession has been canceled, nonrenewed
or revised and ceded indemnity and loss adjustment expense
reserves after any nonrenewal, cancellation or revision
represent less than fifty percent (50%) of the comparable
reserves that would have been ceded had the nonrenewal,
cancellation or revision not occurred;
(ii) An authorized or accredited reinsurer has been
replaced on an existing cession by an unauthorized reinsurer; or
(iii) Collateral requirements previously established
for unauthorized reinsurers have been reduced, including, but
not limited to, the requirement to collateralize incurred but
not reported claim reserves being waived with respect to one (1)
or more unauthorized reinsurers newly participating in an
existing cession.
(c) Subject to subsection (a) of this section, for
purposes of paragraphs (b)(ii) and (iii) of this section, a
report shall be filed if the result of the revision affects more
than ten percent (10%) of the cession.
(d) 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;
(iii) Purpose of, or reason for, the transaction; and
(iv) If applicable, the identity of the replacement
reinsurers.
(e) 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
($1,000,000.00) 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 (5%)
of the insurer's capital and surplus.
ARTICLE 5
ELECTRONIC DELIVERY OF DOCUMENTS