Michigan Administrative Code
Department - Insurance and Financial Services
Insurance
Disclosure of Material Transactions
Section R. 500.53 - Nonrenewals, cancellations, or revisions of ceded reinsurance agreements explained
Current through Vol. 24-04, March 15, 2024
Rule 3.
(1) As used in R 500.51, a material nonrenewal, cancellation, or revision of ceded reinsurance is one that, for property and casualty business, including accident and health business written by a property and casualty insurer, affects more than 50% of the health insurer's total ceded written premium or more than 50% of the insurer's total ceded indemnity and loss adjustment reserves as indicated in the insurer's most recent annual statement or, for life, annuity, anc accident and health business, affects more than 50% of the total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement.
(2) For either property and casualty business or life, annuity, and accident and health business, either of the following events shall constitute a material revision that shall be reported:
(3) Notwithstanding the provisions of subrules (1) and (2) of this rule, a report under R 500.51 shall not be required of either of the following provisions is complied with, as applicable:
(4) All of the following information is required to be disclosed in any report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements: