HAR §16-170-3. affecting in force life insurance business are not material

For purposes of this chapter, a material nonrenewal, cancellation, or revision of a ceded reinsurance agreement or a material new ceded reinsurance agreement affecting in force life insurance business 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 per cent of the insurer’s total ceded written premium; or (ii) More than fifty per cent of the insurer’s total ceded indemnity and loss adjustment reserves. (B) As respects life, annuity, and accident and health business, more than fifty per cent 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 or life, annuity, and accident and health business, either of the following events shall constitute a material revision which must be reported: (i) An authorized reinsurer representing more than ten per cent 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 per cent of a total cession. (2) 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 per cent 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 per cent of the statutory reserve requirement prior to any cession. (b) Information to be reported. (1) The following information is required to be disclosed in any report of a material nonrenewal, cancellation, or revision of ceded 170-4 §16-170-3 reinsurance agreements or material new ceded reinsurance agreements affecting in force life insurance business: (A) Effective date of the nonrenewal, cancellation, or revision or new agreement; (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. (2) Insurers are required to report all material nonrenewals, cancellations, or revisions of ceded reinsurance agreements or material new ceded reinsurance agreements affecting in force life insurance business on a non-consolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or one hundred per cent 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 per cent of the insurer's capital and surplus. [Eff 1/25/97; am and comp 02/20/09] (Auth: HRS §§431:2-201, 431:5-401) (Imp: HRS §§431:2-201, 431:3-301; 431:3-302, 431:5- 306, 431:5-401) Amendments to the compilation of chapter 16-170, Hawaii Administrative Rules, on the Summary page dated January 7, 2009, were adopted on January 7, 2009, following a public hearing held on the same date, after public 170-5 170-7 notices were given in the Honolulu Star-Bulletin, The Garden Island, Hawaii Tribune-Herald, West Hawaii Today, and the Maui News on November 21, 2008. These amendments and compilation shall take effect ten days after filing with the Office of the Lieutenant Governor. /s/ J.P. Schimdt J. P. SCHMIDT Insurance Commissioner APPROVED AS TO FORM: Date 1/29/09 /s/ James F. Nagle Deputy Attorney General APPROVED: Date 2/3/09 /s/ Lawrence Reifurth LAWRENCE M REIFURTH Commerce and Consumer Affairs APPROVED: Date 2/9/09 /s/ Linda Lingle LINDA LINGLE GOVERNOR OF HAWAII February 10, 2009 Filed DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS Amendment and Compilation of Chapter 16-170 Hawaii Administrative Rules January 7, 2009 SUMMARY 1.