40-2,156a.Reporting requirements for materialnonrenewal, cancellation ofrevision of ceded reinsurance agreements.(a) No nonrenewals, cancellations or revisions of cededreinsurance agreements need be reported pursuant to K.S.A. 40-2,156and amendments thereto if the nonrenewals, cancellations or revisions are notmaterial. For purposes of this act, a material nonrenewal, cancellation orrevision is one that affects:
(1) As respects property and casualty business, including accident andhealth business written by a property and casualty insurer:
(A) More than 50% of the insurer's total ceded writtenpremium; or
(B) more than 50% of the insurer's total ceded indemnity andloss adjustment reserves.
(2) As respects life, annuity and accident and health business: more than50% of the total reserve credit taken for business ceded, on anannualized basis, as indicated in the insurer's most recent annual statement.
(3) As respects either property and casualty or life, annuity, and accidentand health business, either of the following events shall constitute a materialrevision which must be reported:
(A) An authorized reinsurer representing more than 10% of atotal cession is replaced by one or more unauthorized reinsurers; or
(B) previously established collateral requirements have been reduced orwaived as respects one or more unauthorized reinsurers representingcollectively more than 10% of a total cession.
(b) No filing is required pursuant to subsection (a) if:
(1) As respects property and casualty business, including accident andhealth business written by a property and casualty insurer, the insurer'stotal ceded written premium represents, on an annualized basis, less than 10%of its total written premium for direct and assumed business; or
(2) as respects life, annuity and accident and health business: the totalreserve credit taken for business ceded represents, on an annualized basis,less than 10% of the statutory reserve requirement prior to anycession.
(c) The following information is required to be disclosed in any report of amaterial nonrenewal, cancellation or revision of ceded reinsurance agreements:
(1) The effective date of the nonrenewal, cancellation or revision;
(2) the description of the transaction with an identification of theinitiator thereof;
(3) the purpose of, or reason for, the transaction; and
(4) the identity of the replacement reinsurers, if applicable.
(d) Insurers are required to report all material nonrenewals, cancellationsor revisions of ceded reinsurance agreements on a nonconsolidated basis unlessthe insurer is part of a consolidated group of insurers which utilizes apooling arrangement or 100% reinsurance agreement that affectsthe solvency and integrity of the insurer's reserves and the insurer cededsubstantially all of its direct and assumed business to the pool. An insureris deemed to have ceded substantially all of its direct and assumed business toa pool if the insurer has less than $1,000,000 total direct plus assumedwritten premiums during a calendar year that are not subject to a poolingarrangement and the net income of the business not subject to the poolingarrangement represents less than 5% of the insurer's capital andsurplus.
40-2,156a.Reporting requirements for materialnonrenewal, cancellation ofrevision of ceded reinsurance agreements.(a) No nonrenewals, cancellations or revisions of cededreinsurance agreements need be reported pursuant to K.S.A. 40-2,156and amendments thereto if the nonrenewals, cancellations or revisions are notmaterial. For purposes of this act, a material nonrenewal, cancellation orrevision is one that affects:
(1) As respects property and casualty business, including accident andhealth business written by a property and casualty insurer:
(A) More than 50% of the insurer's total ceded writtenpremium; or
(B) more than 50% of the insurer's total ceded indemnity andloss adjustment reserves.
(2) As respects life, annuity and accident and health business: more than50% of the total reserve credit taken for business ceded, on anannualized basis, as indicated in the insurer's most recent annual statement.
(3) As respects either property and casualty or life, annuity, and accidentand health business, either of the following events shall constitute a materialrevision which must be reported:
(A) An authorized reinsurer representing more than 10% of atotal cession is replaced by one or more unauthorized reinsurers; or
(B) previously established collateral requirements have been reduced orwaived as respects one or more unauthorized reinsurers representingcollectively more than 10% of a total cession.
(b) No filing is required pursuant to subsection (a) if:
(1) As respects property and casualty business, including accident andhealth business written by a property and casualty insurer, the insurer'stotal ceded written premium represents, on an annualized basis, less than 10%of its total written premium for direct and assumed business; or
(2) as respects life, annuity and accident and health business: the totalreserve credit taken for business ceded represents, on an annualized basis,less than 10% of the statutory reserve requirement prior to anycession.
(c) The following information is required to be disclosed in any report of amaterial nonrenewal, cancellation or revision of ceded reinsurance agreements:
(1) The effective date of the nonrenewal, cancellation or revision;
(2) the description of the transaction with an identification of theinitiator thereof;
(3) the purpose of, or reason for, the transaction; and
(4) the identity of the replacement reinsurers, if applicable.
(d) Insurers are required to report all material nonrenewals, cancellationsor revisions of ceded reinsurance agreements on a nonconsolidated basis unlessthe insurer is part of a consolidated group of insurers which utilizes apooling arrangement or 100% reinsurance agreement that affectsthe solvency and integrity of the insurer's reserves and the insurer cededsubstantially all of its direct and assumed business to the pool. An insureris deemed to have ceded substantially all of its direct and assumed business toa pool if the insurer has less than $1,000,000 total direct plus assumedwritten premiums during a calendar year that are not subject to a poolingarrangement and the net income of the business not subject to the poolingarrangement represents less than 5% of the insurer's capital andsurplus.
40-2,156a.Reporting requirements for materialnonrenewal, cancellation ofrevision of ceded reinsurance agreements.(a) No nonrenewals, cancellations or revisions of cededreinsurance agreements need be reported pursuant to K.S.A. 40-2,156and amendments thereto if the nonrenewals, cancellations or revisions are notmaterial. For purposes of this act, a material nonrenewal, cancellation orrevision is one that affects:
(1) As respects property and casualty business, including accident andhealth business written by a property and casualty insurer:
(A) More than 50% of the insurer's total ceded writtenpremium; or
(B) more than 50% of the insurer's total ceded indemnity andloss adjustment reserves.
(2) As respects life, annuity and accident and health business: more than50% of the total reserve credit taken for business ceded, on anannualized basis, as indicated in the insurer's most recent annual statement.
(3) As respects either property and casualty or life, annuity, and accidentand health business, either of the following events shall constitute a materialrevision which must be reported:
(A) An authorized reinsurer representing more than 10% of atotal cession is replaced by one or more unauthorized reinsurers; or
(B) previously established collateral requirements have been reduced orwaived as respects one or more unauthorized reinsurers representingcollectively more than 10% of a total cession.
(b) No filing is required pursuant to subsection (a) if:
(1) As respects property and casualty business, including accident andhealth business written by a property and casualty insurer, the insurer'stotal ceded written premium represents, on an annualized basis, less than 10%of its total written premium for direct and assumed business; or
(2) as respects life, annuity and accident and health business: the totalreserve credit taken for business ceded represents, on an annualized basis,less than 10% of the statutory reserve requirement prior to anycession.
(c) The following information is required to be disclosed in any report of amaterial nonrenewal, cancellation or revision of ceded reinsurance agreements:
(1) The effective date of the nonrenewal, cancellation or revision;
(2) the description of the transaction with an identification of theinitiator thereof;
(3) the purpose of, or reason for, the transaction; and
(4) the identity of the replacement reinsurers, if applicable.
(d) Insurers are required to report all material nonrenewals, cancellationsor revisions of ceded reinsurance agreements on a nonconsolidated basis unlessthe insurer is part of a consolidated group of insurers which utilizes apooling arrangement or 100% reinsurance agreement that affectsthe solvency and integrity of the insurer's reserves and the insurer cededsubstantially all of its direct and assumed business to the pool. An insureris deemed to have ceded substantially all of its direct and assumed business toa pool if the insurer has less than $1,000,000 total direct plus assumedwritten premiums during a calendar year that are not subject to a poolingarrangement and the net income of the business not subject to the poolingarrangement represents less than 5% of the insurer's capital andsurplus.
