Ch. 455                                    LAWS OF MARYLAND

THAT THE CANCELLATION OR NONRENEWAL ACTION IS NECESSARY AS A
RESULT OF:                       

(I) THE LOSS OF OR SUBSTANTIAL CHANGES IN
APPLICABLE REINSURANCE;                                              

(II.) FINANCIAL LOSSES OF THE INSURER; OR

(III) ANY OTHER BUSINESS OR ECONOMIC REASON OF
THE INSURER.

(I) THAT THE LOSSES OR SUBSTANTIAL CHANGES IN
APPLICABLE REINSURANCE NECESSITATE THE CANCELLATION OR NONRENEWAL
ACTION;

(II) (3) IF THE REASON FOR THE CANCELLATION OR
NONRENEWAL IS LOSS OF OR SUBSTANTIAL CHANGES IN REINSURANCE, THE
PLAN OF WITHDRAWAL SHALL CONTAIN A STATEMENT:

(I) THAT THE INSURER HAS MADE A GOOD FAITH
EFFORT TO OBTAIN REPLACEMENT REINSURANCE, BUT WAS UNABLE TO DO SO
DUE TO EITHER THE UNAVAILABILITY OR UNAFFORDABILITY OR
REPLACEMENT REINSURANCE;

(III) IDENTIFYING THE CATEGORY OF RISKS, THE
TOTAL NUMBER OF RISKS WRITTEN BY THE COMPANY IN THAT CATEGORY,
AND THE NUMBER OF RISKS INTENDED TO BE CANCELLED OR NONRENEWED;

(IV) IDENTIFYING THE TOTAL AMOUNT OF THE

INSURER'S NET RETENTION FOR THE RISKS INTENDED TO BE CANCELLED OR
NONRENEWED;

(V) IDENTIFYING THE TOTAL AMOUNT OF RISK

ALLOTTED TO EACH REINSURER AND THE PORTION OF THAT TOTAL THAT IS
NO LONGER AVAILABLE;

(VI) (II) EXPLAINING HOW THE LOSS OF, OR
REDUCTION IN, REINSURANCE AFFECTS THE COMPANY'S RISKS THROUGHOUT
THE ENTIRE LINE OR CATEGORY OF INSURANCE PROPOSED FOR
CANCELLATION OR NONRENEWAL; AND

(VII) [III) EXPLAINING WHY CANCELLATION OR
NONRENEWAL IS NECESSARY TO CURE THE LOSS OF OR REDUCTION IN
AVAILABLE REINSURANCE;

(4) NOTWITHSTANDING THE REASON FOR CANCELLATION OR

NONRENEWAL, THE PLAN OF WITHDRAWAL SHALL ALSO CONTAIN A

STATEMENT:

(I) IDENTIFYING THE CATEGORY OF RISK, THE TOTAL
NUMBER OF RISKS WRITTEN BY THE INSURER IN THAT LINE OF BUSINESS,
AND THE NUMBER OF RISKS INTENDED TO BE CANCELLED OR NOT RENEWED;

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