Chapter Ins 41

Ins 41.05(3) (3) Asset dispositions subject to this chapter include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, whether for the benefit of creditors or otherwise, abandonment, destruction, or other disposition.

Ins 41.05(4) (4) The following information is required to be disclosed in any report of a material acquisition or disposition of assets under this chapter:

Ins 41.05(4)(a) (a) Date of the transaction.

Ins 41.05(4)(b) (b) Manner of acquisition or disposition.

Ins 41.05(4)(c) (c) Description of the assets involved.

Ins 41.05(4)(d) (d) Nature and amount of the consideration given or received.

Ins 41.05(4)(e) (e) Purpose of, or reason for, the transaction.

Ins 41.05(4)(f) (f) Manner by which the amount of consideration was determined.

Ins 41.05(4)(g) (g) Gain or loss recognized or realized as a result of the transaction.

Ins 41.05(4)(h) (h) Name of the person from whom the assets were acquired or to whom they were disposed.

Ins 41.05(5) (5) Insurers are required to report material acquisitions and dispositions under this chapter on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or 100% 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 5% of the insurer’s capital and surplus.

Ins 41.05 History History: Cr. Register, December, 1995, No. 480, eff. 1-1-96.

Ins 41.10 Ins 41.10 Nonrenewals, cancellations or revisions of ceded reinsurance agreements.

Ins 41.10(1) (1) Materiality and scope.

Ins 41.10(1)(a) (a) No nonrenewals, cancellations or revisions of ceded reinsurance agreements need be reported under s. Ins 41.01 if the nonrenewals, cancellations or revisions are not material. For purposes of this chapter, a material nonrenewal, cancellation or revision is one that affects:

Ins 41.10(1)(a)1. 1. For property and casualty business, including accident and health business written by a property and casualty insurer:

Ins 41.10(1)(a)1.a. a. More than 50% of an insurer’s ceded written premium; or

Ins 41.10(1)(a)1.b. b. More than 50% of the insurer’s total ceded indemnity and loss adjustment reserves.

Ins 41.10(1)(a)2. 2. For 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 recently filed statutory statement.

Ins 41.10(1)(a)3. 3. For either a property and casualty or life, annuity, and accident and health business, either of the following events shall constitute a material revision which shall be reported:

Ins 41.10(1)(a)3.a. a. An authorized reinsurer representing more than 10% of a total cession is replaced by one or more unauthorized reinsurers; or

Ins 41.10(1)(a)3.b. 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.

Ins 41.10(1)(b) (b) No filing is required under this chapter if:

Ins 41.10(1)(b)1. 1. For 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 10% of its total written premium for direct and assumed business; or

Ins 41.10(1)(b)2. 2. For life, annuity and accident and health business the total reserve credit taken for business ceded represents, on an annualized basis, less than 10% of the statutory reserve requirement prior to any cession.

Ins 41.10(2) (2) The following information is required to be disclosed in any report of a material nonrenewal, cancellation or revision of ceded reinsurance agreements:

Ins 41.10(2)(a) (a) Effective date of the nonrenewal, cancellation or revision.

Ins 41.10(2)(b) (b) The description of the transaction with an identification of the initiator of the transaction.

Ins 41.10(2)(c) (c) Purpose of, or reason for, the transaction.

Ins 41.10(2)(d) (d) If applicable, the identity of the replacement reinsurers.

Ins 41.10(3) (3) Insurers are required to report all material nonrenewals, cancellations or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or 100% 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 5% of the insurer’s capital and surplus.

Ins 41.10 History History: Cr. Register, December, 1995, No. 480, eff. 1-1-96.

Ins 41.90 Ins 41.90 Other requirements. This chapter is in addition to, and does not supersede or substitute for, other disclosure or filing requirements, including, but not limited to, s. 611.78, Stats., and ch. 617, Stats.

Ins 41.90 History History: Cr. Register, December, 1995, No. 480, eff. 1-1-96.