§ 31–4121.05. Exemptions.

(a) An insurer shall be exempt from the requirements of this chapter if:

(1) The insurer has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than $500 million; and

(2) The insurance group of which the insurer is a member has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than $1 billion.

(b) If an insurer qualifies for exemption pursuant to subsection (a)(1) of this section, but the insurance group of which the insurer is a member does not qualify for exemption pursuant to subsection (a)(2) of this section, then the ORSA Summary Report that may be required pursuant to § 31-4121.04 shall include every insurer within the insurance group; which requirement may be satisfied by the submission of more than one ORSA Summary Report for any combination of insurers; provided, that the combination of reports includes every insurer within the insurance group.

(c) If an insurer does not qualify for exemption pursuant to subsection (a)(1) of this section, but the insurance group of which it is a member qualifies for exemption pursuant to subsection (a)(2) of this section, then the only ORSA Summary Report that may be required pursuant to § 31-4121.04 shall be the report applicable to that insurer.

(d)(1) An insurer that does not qualify for exemption pursuant to subsection (a) of this section may apply to the Commissioner for a waiver from the requirements of this chapter based upon unique circumstances.

(2)(A) In deciding whether to grant an insurer's request for waiver, the Commissioner may consider:

(i) The type and volume of business written;

(ii) The ownership;

(iii) The organizational structure; and

(iv) Any other factor the Commissioner considers relevant to the insurer or insurance group of which the insurer is a member.

(B) If the insurer is part of an insurance group with insurers domiciled in more than one state, the Commissioner shall coordinate with the lead state commissioner and with other domiciliary commissioners of the other states in considering whether to grant the insurer's request for a waiver.

(e) Notwithstanding the exemptions stated in this section, the Commissioner may require an insurer to:

(1) Maintain a risk management framework, conduct an ORSA, and file an ORSA Summary Report based on unique circumstances, including the type and volume of business written, ownership, and organizational structure, and federal agency and international supervisor requests; or

(2) Maintain a risk management framework, conduct an ORSA, and file an ORSA Summary Report if:

(A) The insurer has risk-based capital for a Company Action Level Event, as defined in § 31-2003;

(B) Meets one or more of the standards of an insurer deemed to be in hazardous financial condition, as defined in § 31-2101; or

(C) As determined by the Commissioner, exhibits other qualities of a troubled insurer.

(f) If an insurer that qualifies for an exemption pursuant to subsection (a) of this section no longer qualifies for that exemption due to changes in premiums as reflected in the insurer's most recent annual statement or in the most recent annual statements of the insurers within the insurance group of which the insurer is a member, the insurer shall have one year following the loss of exemption qualification to comply with the requirements of this chapter.