This is called statement-based replication (often abbreviated as SBR), which corresponds to the standard statement-based binary logging format. In MySQL 5.1.4 and earlier, binary logging and replication used this format exclusively.
source: http://dev.mysql.com/doc/refman/5.1/en/replication-formats.html
EDIT 1:
if connection breaks you can set slave_net_timeout
variable to reconnect
EDIT 2:
check this article
http://www.danielschneller.com/2006/10/mysql-replication-timeout-trap.html