Mich. Admin. Code R. 500.51 - Report of acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements
Current through Vol. 22-05, April 1, 2022
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Rule 1. (1) Every insurer domiciled in Michigan shall file a report with the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements, unless the acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the commissioner for review, approval, or information purposes pursuant to other statutory or regulatory requirements.
(2) The report required in subrule (1) of this rule is due within 15 days after the end of the calendar month in which the transactions specified in subrule (1) of this rule occur.
(3) A complete copy of the report, including any exhibits or other attachments, shall also be filed with the national association of insurance commissioners.
(4) All reports obtained by, or disclosed to, the commissioner pursuant to this rule shall be confidential, shall not be subject to subpoena, and shall not be made public by the commissioner, the national association of insurance commissioners, or any other person without the prior written consent of the insurer to which it pertains, unless the commissioner, after giving the insurer that would be affected notice and an opportunity to he heard, determines that5 the interest of the policyholders, shareholders, or the public will be served by publication, in which event the commissioner may publish all or part of the report in the manner the commissioner deems appropriate. Notwithstanding the provisions of this subrule, if assurances are provided that the information contained in the report will be kept confidential, the commissioner may disclose the information to the insurance regulatory agencies of other states.
(5) Insurers are required to report material acquisitions and dispositions of assets and material nonrenewals, cancellations, or revisions of ceded reinsurance arrangements on a nonconsolidated basis, unless the insurer is part of a consolidated group of insurers that 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 $1,000,000.00 total direct and assumed 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 surplus.
History: 1996 AACS.