Oregon Administrative Rules
Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION
Division 11 - ANNUAL STATEMENTS AND REPORTS BY INSURERS
Section 836-011-0460 - Nonrenewals, Cancellations or Revisions of Ceded Reinsurance Agreements
Universal Citation: OR Admin Rules 836-011-0460
Current through Register Vol. 63, No. 9, September 1, 2024
(1) Materiality and scope:
(a) No nonrenewals, cancellations or
revisions of ceded reinsurance agreements need be reported pursuant to OAR
836-011-0440 if the nonrenewals,
cancellations or revisions are not material. For purposes of
836-011-0430 to
836-011-0460, 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:
(i) More than fifty percent
of the insurer's total ceded written premium; or
(ii) More than fifty percent 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 of the total reserve credit taken
for business ceded, on an annualized basis, as indicated in the insurer's most
recent annual statement;
(C) As
respects either property and casualty business or life, annuity, and accident
and health business, either of the following events shall constitute a material
revision that must be reported:
(i) An
authorized reinsurer representing more than ten percent of a total cession is
replaced by one or more unauthorized reinsurers; or
(ii) 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, 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 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 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 a ceded reinsurance agreement:
(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.
(b) Insurers are required to report all
material nonrenewals, cancellations or revisions of ceded reinsurance
agreements on a non-consolidated basis unless the insurer is part of a
consolidated group of insurers that utilizes a pooling arrangement or 100
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
$1,000,000 total direct plus assumed written premiums during a calendar year
that 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.
Stat. Auth.: ORS 731.244 & ORS 731.574
Stats. Implemented: ORS 731.574 & ORS 733.210
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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