Utah Code 31A-5-703. Nonrenewals, cancellations, or revisions of ceded reinsurance agreements
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Terms Used In Utah Code 31A-5-703
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Annuity: means an agreement to make periodical payments for a period certain or over the lifetime of one or more individuals if the making or continuance of all or some of the series of the payments, or the amount of the payment, is dependent upon the continuance of human life. See Utah Code 31A-1-301
- Filed: means that a filing is:(69)(a)(i) submitted to the department as required by and in accordance with applicable statute, rule, or filing order;(69)(a)(ii) received by the department within the time period provided in applicable statute, rule, or filing order; and(69)(a)(iii) accompanied by the appropriate fee in accordance with:(69)(a)(iii)(A) Section
31A-3-103 ; or(69)(a)(iii)(B) rule. See Utah Code 31A-1-301- Indemnity: means the payment of an amount to offset all or part of an insured loss. See Utah Code 31A-1-301
- Premium: includes , however designated:
(156)(b)(i) an assessment;(156)(b)(ii) a membership fee;(156)(b)(iii) a required contribution; or(156)(b)(iv) monetary consideration. See Utah Code 31A-1-301- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Reinsurance: means an insurance transaction where an insurer, for consideration, transfers any portion of the risk it has assumed to another insurer. See Utah Code 31A-1-301
- Reinsurer: means a person licensed in this state as an insurer with the authority to assume reinsurance. See Utah Code 31A-1-301
- Surplus: means the excess of assets over the sum of paid-in capital and liabilities. See Utah Code 31A-1-301
(1)(a) A nonrenewal, cancellation, or revision of ceded reinsurance agreements is not subject to the reporting requirements of Section 31A-5-701 if:(1)(a)(i) the nonrenewal, cancellation, or revision is not material; or(1)(a)(ii) with respect to a property and casualty business, the insurer’s total ceded written premium, on an annualized basis, is less than 10% of its total written premium for direct and assumed business; or(1)(a)(iii) with respect to a life, annuity, and accident and health business, the total reserve credit taken for business ceded, on an annualized basis, is less than 10% of the statutory reserve requirement prior to a cession.(1)(b) For purposes of this part, a material nonrenewal, cancellation, or revision is one that affects:(1)(b)(i) with respect to a property and casualty business:(1)(b)(i)(A) more than 50% of the insurer’s total ceded written premium; or(1)(b)(i)(B) more than 50% of the insurer’s total ceded indemnity and loss adjustment reserves;(1)(b)(ii) with respect to a life, annuity, and accident and health business, 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; or(1)(b)(iii) with respect to either property and casualty or life, annuity, or accident and health business:(1)(b)(iii)(A) an authorized reinsurer representing more than 10% of a total cession is replaced by one or more unauthorized reinsurers; or(1)(b)(iii)(B) previously established collateral requirements have been reduced or waived as respects one or more unauthorized reinsurers representing collectively more than 10% of a total cession.(2)(2)(a) The following information is required to be disclosed in any report filed pursuant to Section 31A-5-701 of a material nonrenewal, cancellation, or revision of a ceded reinsurance agreement:(2)(a)(i) the effective date of the nonrenewal, cancellation, or revision;(2)(a)(ii) the description of the transaction with an identification of the initiator of the transaction;(2)(a)(iii) the purpose of, or reason for the transaction; and(2)(a)(iv) if applicable, the identity of the replacement reinsurers.(2)(b)(2)(b)(i) Insurers are required to report all material nonrenewals, cancellations, or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the insurer:(2)(b)(i)(A) is part of a consolidated group of insurers that uses a pooling arrangement or 100% reinsurance agreement that affects the solvency and integrity of the insurer’s reserves; and(2)(b)(i)(B) ceded substantially all of its direct and assumed business to the pool.(2)(b)(ii) An insurer is considered to have ceded substantially all of its direct and assumed business to a pool if:(2)(b)(ii)(A) 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(2)(b)(ii)(B) the net income of the business not subject to the pooling arrangement represents less than 5% of the insurer’s capital and surplus.