{"data":{"id":"us-ky/krs-304.24-415","jurisdiction":"us-ky","citation":"KRS 304.24-415","heading":"Report disclosing material acquisitions and dispositions of assets,","body":"nonrenewals, cancellations, or revisions of ceded reinsurance agreements --\nExceptions.\n(1) (a) Every insurer domiciled in this state shall file a report with the commissioner\ndisclosing material acquisitions and dispositions of assets or material\nnonrenewals, cancellations, or revisions of ceded reinsurance agreements\nunless the acquisitions and dispositions of assets or material nonrenewals,\ncancellations, or revisions of ceded re insurance agreements have been\nsubmitted to the commissioner for review, approval, or information purposes\npursuant to other provisions of this chapter.\n(b) The report required in paragraph (a) of this subsection is due within fifteen\n(15) days after the e nd of the calendar month in which any of the foregoing\ntransactions occur.\n(c) One (1) complete copy of the report, including any exhibits or other\nattachments, shall be filed with:\n1. The insurance department of the insurer's state of domicile; and\n2. The National Association of Insurance Commissioners.\n(d) All reports obtained by or disclosed to the commissioner pursuant to this\nsection shall be given confidential treatment and shall not be subject to\nsubpoena and shall not be made public by the commissio ner, the National\nAssociation of Insurance Commissioners, or any other person, except to\ninsurance departments of other states, without the prior written consent of the\ninsurer to which it pertains unless the commissioner, after giving the insurer\nwho would be affected notice and opportunity to be heard, determines that the\ninterest of policyholders, shareholders, or the public will be served by\npublication, in which event the commissioner may publish all or any part in\nthe manner the commissioner may deem appropriate.\n(2) (a) No acquisitions or dispositions of assets need be reported pursuant to\nsubsection (1) of this section if the acquisitions or dispositions are not\nmaterial. For purposes of this section, a material acquisition, or the aggregate\nof any s eries of related acquisitions during any thirty (30) day period, is one\nthat is nonrecurring and not in the ordinary course of business and involves\nmore than five percent (5%) of the reporting insurer's total admitted assets as\nreported in its most recent  statutory statement filed with the insurance\ndepartment of the insurer's state of domicile.\n(b) 1. Asset acquisitions subject to this section include every purchase, lease\nexchange, merger, consolidation, succession, or other acquisition other\nthan the co nstruction or development of real property by or for the\nreporting insurer or the acquisition of materials for such purpose.\n2. Asset dispositions subject to this section include every sale, lease,\nexchange, merger, consolidation, mortgage, hypothecation, assignment\n(whether for the benefit of creditors or otherwise), abandonment,\ndestruction, or other disposition.\n(c) 1. The following information is required to be disclosed in any report of a\nmaterial acquisition or disposition of assets:\na. Date of the transaction;\nb. Manner of acquisition or disposition;\nc. Description of the assets involved;\nd. Nature and amount of the consideration given or received;\ne. Purpose of, or reason for, the transaction;\nf. Manner by which the amount of consideration was determined;\ng. Gain or loss recognized or realized as a result of the transaction;\nand\nh. Names of the persons from which the assets were acquired or to\nwhom they were disposed.\n2. Insurers are required to report material acquisitions and dispositions on a\nnonconsolidated basis unless the insurer is part of a consolidated group\nof insurers which utilizes a pooling arrangement or one hundred percent\n(100%) reinsurance agreement that affects the solvency and int egrity of\nthe insurer's reserves and the insurer ceded substantially all of its direct\nand assumed business to the pool. An insurer is deemed to have ceded\nsubstantially all of its direct and assumed business to a pool if the\ninsurer has less than one mill ion dollars ($1,000,000) total direct plus\nassumed written premiums during a calendar year that are not subject to\na pooling arrangement and the net income of the business not subject to\nthe pooling arrangement represents less than five percent (5%) of the\ninsurer's capital and surplus.\n(3) (a) No nonrenewals, cancellations, or revisions of ceded reinsurance agreements\nneed be reported pursuant to subsection (1) of this section if the nonrenewals,\ncancellations or revisions are not material. For purposes of  this section, a\nmaterial nonrenewal, cancellation, or revision is one that affects:\n1. As respects property and casualty business, including accident and\nhealth business written by a property and casualty insurer:\na. More than fifty percent (50%) of the i nsurer's total ceded written\npremium; or\nb. More than fifty percent (50%) of the insurer's total ceded\nindemnity and loss adjustment reserves.\n2. As respects life, annuity, and accident and health business, more than\nfifty percent (50%) of the total reserv e credit taken for business ceded,\non an annualized basis, as indicated in the insurer's most recent annual\nstatement.\n3. As respects either property and casualty or life, annuity, and accident\nand health business, either of the following events shall cons titute a\nmaterial revision which must be reported:\na. An authorized reinsurer representing more than ten percent (10%)\nof a total cession is replaced by one (1) or more unauthorized\nreinsurers; or\nb. Previously established collateral requirements have been  reduced\nor waived as respects one (1) or more unauthorized reinsurers\nrepresenting collectively more than ten percent (10%) of a total\ncession.\n(b) No filing shall be required if:\n1. As respects property and casualty business, including accident and\nhealth business written by a property and casualty insurer, the insurer's\ntotal ceded written premium represents, on an annualized basis, less than\nten percent (10%) of its total written premium for direct and assumed\nbusiness; or\n2. As respects life, annuity, and accident and health business, the total\nreserve credit taken for business ceded represents, on an annualized\nbasis, less than ten percent (10%) of the statutory reserve requirements\nprior to any cession.\n(c) The following information is required to be disclosed in any report of a\nmaterial nonrenewal, cancellation, or revision of ceded reinsurance\nagreements:\n1. Effective date of the nonrenewal, cancellation, or revision;\n2. The description of the transaction with an identification of the initiator\nthereof;\n3. Purpose of, or reason for, the transaction; and\n4. If applicable, the identity of the replacement reinsurers.\n(d) Insurers are required to report all material nonrenewals, cancellations, or\nrevisions of ceded reinsurance agreements on a nonconsolida ted basis unless\nthe insurer is part of a consolidated group of insurers which utilizes a pooling\narrangement or one hundred percent (100%) reinsurance agreement that\naffects the solvency and integrity of the insurer's reserves and the insurer\nceded substa ntially all of its direct and assumed business to a pool if the\ninsurer has less than one million dollars ($1,000,000) total direct plus\nassumed written premiums during a calendar year that are not subject to a\npooling arrangement and the net income of the  business not subject to the\npooling arrangement represents less than five percent (5%) of the insurer's\ncapital and surplus.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29574","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"3029a0393c8563cfbbab01b3bafc9585f2a976991cb3889206a337a11e0a943a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.24-410","next":"us-ky/krs-304.24-420"},"notice":"GroundRules: Original legal text. Not legal advice."}