Oklahoma § 36-310A.3 - Material nonrenewals, cancellations or revisions of

§ 36-310A.3. Material nonrenewals, cancellations or revisions of

ceded reinsurance agreements defined - Information to be disclosed

in report.

A. 1. No nonrenewals, cancellations or revisions of ceded

reinsurance agreements need be reported pursuant to Section 1 of

this act if the nonrenewals, cancellations or revisions are not

material. For purposes of this act, a material nonrenewal,

cancellation or revision is one that affects:

a.

as respects property and casualty business, including

accident and health business written by a property and

casualty insurer:

(1) more than fifty percent (50%) of the insurer's

total ceded written premium, or

(2) more than fifty percent (50%) of the insurer's

total ceded indemnity and loss adjustment

reserves,

b.

as respects 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

recent annual statement, and

c.

as respects either property and casualty or life,

annuity, and accident and health business, either of

the following events shall constitute a material

revision which must be reported:

(1) an authorized reinsurer representing more than

ten percent (10%) of a total cession is replaced

by one or more unauthorized reinsurers, or

(2) previously established collateral requirements

have been reduced or waived as respects one or

Oklahoma Statutes - Title 36. Insurance

more unauthorized reinsurers representing

collectively more than ten percent (10%) of a

total cession.

2. However, no filing shall be required if:

a.

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 (10%) of its total written premium for

direct and assumed business, or

b.

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 (10%) of the statutory reserve requirement

prior to any cession.

B. 1. The following information is required to 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 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:

a.

the insurer has less than One Million Dollars

($1,000,000.00) total direct plus assumed written

premiums during a calendar year that are not subject

to a pooling arrangement, and

b.

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.

Added by Laws 1997, c. 273, § 3, eff. July 1, 1997.