48.05.530 - Material nonrenewals, cancellations, or revisions of ceded reinsurance agreements. - Washington Statutes

Material nonrenewals, cancellations, or revisions of ceded reinsurance agreements.

(1) No nonrenewals, cancellations, or revisions of ceded reinsurance agreements need be reported under RCW 48.05.510 if the nonrenewals, cancellations, or revisions are not material. For purposes of RCW 48.05.510 through 48.05.535, a material nonrenewal, cancellation, or revision is one that affects:

     (a) More than fifty percent of a property and casualty insurer's total ceded written premium;

     (b) More than fifty percent of the property and casualty insurer's total ceded indemnity and loss adjustment reserves;

     (c) More than fifty percent of a nonproperty and casualty insurer's total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement;

     (d) More than ten percent of an insurer's total cession when it is replaced by one or more unauthorized reinsurers; or

     (e) Previously established collateral requirements, when they have been reduced or waived as respects one or more unauthorized reinsurers representing collectively more than ten percent of a total cession.

     (2) However, a filing is not required if:

     (a) A property and casualty 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) A nonproperty and casualty insurer's 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.

[1995 c 86 § 5.]