(1) No nonrenewals, cancellations, or revisions of ceded reinsurance agreements need be reported pursuant to section 44-6303 if the nonrenewals, cancellations, or revisions are not material. A material nonrenewal, cancellation, or revision shall mean one that affects for property and casualty business, including sickness and accident business when written as such, more than fifty percent of an insurer‘s ceded written premium, or for life, annuity, and sickness and accident business, more than fifty percent of the total reserve credit taken for business ceded, on an annualized basis as indicated in the insurer’s most recent financial statement filed with the director pursuant to section 44-322. No filing shall be required if the insurer’s ceded written premium or the total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent of direct plus assumed written premium or ten percent of the statutory reserve requirement prior to any cession, respectively.

(2) Subject to the criteria in subsection (1) of this section, a report shall be filed without regard to which party has initiated the nonrenewal, cancellation, or revision of ceded reinsurance whenever one or more of the following conditions exist:

(a) The entire cession has been canceled, nonrenewed, or revised and ceded indemnity and loss adjustment expense reserves after any nonrenewal, cancellation, or revision represent less than fifty percent of the comparable reserves that would have been ceded had the nonrenewal, cancellation, or revision not occurred;

(b) An authorized reinsurer has been replaced on an existing cession by an unauthorized reinsurer; or

(c) Collateral requirements previously established for unauthorized reinsurers have been reduced.

Subject to the materiality criteria, for purposes of subdivisions (2)(b) and (c) of this section, a report shall be filed if the result of the revision affects more than ten percent of the cession.

(3) The following information shall be disclosed in any report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements:

(a) The effective date of the nonrenewal, cancellation, or revision;

(b) The description of the transaction with an identification of the initiator thereof;

(c) The purpose of or reason for the transaction; and

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

(4) Insurers shall 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 one-hundred-percent 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 one million dollars 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 percent of the insurer’s capital and surplus.