Title 38a, Title 38a: Insurance

Sec. 38a-130. (Formerly Sec. 38-39b). Acquisition and divestiture of domestic insurance companies. Required statement and notice filings. Violations. (a)(1) No person other than the issuer shall make a tender offer for or a request or invitation for tenders of, enter into any agr…

Sec. 38a-131. (Formerly Sec. 38-39c). Acquisitions. Exemptions. Preacquisition notifications. Violations of competitive standards. Hearing. Penalties. (a) For purposes of this section, (1) “acquisition” includes any agreement, arrangement or activity the consummation of which wil…

Sec. 38a-132. (Formerly Sec. 38-39d). Approval of acquisitions. Hearing. Expenses. (a) The commissioner shall approve any merger or other acquisition of control referred to in subsection (a) of section 38a-130 unless, after a public hearing, the commissioner finds that: (1) After…

Sec. 38a-133. (Formerly Sec. 38-39e). Exemptions. The provisions of sections 38a-130 and 38a-132 and subsection (i) of section 38a-136 shall not apply to any offer, request, invitation, agreement or acquisition that the commissioner by order shall exempt therefrom as (1) not havi…

Sec. 38a-134. (Formerly Sec. 38-39f). Nonvotable securities. Injunctive relief. (a) No security which is the subject of any agreement or arrangement regarding acquisition or which is acquired or to be acquired in contravention of the provisions of sections 38a-129 to 38a-140, inc…

Sec. 38a-135. (Formerly Sec. 38-39g). Insurance holding company system member registration. Registration statement. Annual enterprise risk report. Group capital calculation. Liquidity stress test framework. Termination of registration statement. Disclaimer of affiliation. Exempti…

Sec. 38a-136. (Formerly Sec. 38-39h). Requirements re transactions within an insurance holding company system. Prohibited transactions. Extraordinary dividends or distributions. Affiliate consent to jurisdiction. (a) Transactions within an insurance holding company system to whic…

Sec. 38a-137. (Formerly Sec. 38-39i). Confidentiality of information. (a) All information, documents, materials and copies thereof obtained by or disclosed to the commissioner or any other person in the course of an examination or investigation made pursuant to section 38a-14a an…

Sec. 38a-138. (Formerly Sec. 38-39j). Regulations. The commissioner may, after a public hearing called for the purpose, notice of which hearing shall be published in the Connecticut Law Journal at least thirty days prior to the date of such hearing, promulgate such regulations, i…

Sec. 38a-139. (Formerly Sec. 38-39k). Appeals. (a) Any person aggrieved by any regulation, order or other action of the commissioner pursuant to sections 38a-129 to 38a-l40, inclusive, or any failure of the commissioner to act as required by said sections may appeal therefrom to …

Sec. 38a-140. (Formerly Sec. 38-39l). Remedial and penal provisions. (a)(1) Whenever it appears to the commissioner that any insurance company or any director, officer, employee or agent thereof has committed or is about to commit a violation of sections 38a-129 to 38a-140, inclu…

Sec. 38a-141. (Formerly Sec. 38-39m). Financial and market conduct examination of acquired domestic insurance company. Transactions limited. Penalties. Regulations. Section 38a-141 is repealed. (P.A. 87-302, S. 1, 2; P.A. 90-243, S. 14; P.A. 92-112, S. 34, 35.)

Sec. 38a-142. Own risk and solvency assessments. Reports. Penalty. Exemptions. Confidentiality of documents, materials or other information. (a) As used in this section: (1) “Insurance group” means those insurers and affiliates included within an insurance holding company system,…

Sec. 38a-142a. Corporate governance annual disclosures. Confidentiality of documents, materials or other information. CGAD reviews. Penalty. (a) As used in this section: (1) “Board” means the board of directors of an insurer or insurance group; (2) “CGAD” or “corporate governance…

Secs. 38a-143 to 38a-145. Reserved for future use. PART VI MONOPOLIES. SALE OR EXCHANGE OF STOCK.MERGERS. CONVERSIONS. REORGANIZATIONS

Sec. 38a-146. (Formerly Sec. 38-37). Domestic insurance company may acquire stock of other companies. Any domestic insurance company may retain or acquire the whole or any part of the stock or other share capital of other insurance corporations, provided no insurance corporation …

Sec. 38a-147. (Formerly Sec. 38-37a). Solicitation of proxies. (a) No person shall, in contravention of such regulations as the Insurance Commissioner may prescribe as necessary or appropriate in the public interest or for the protection of investors, solicit or permit the use of…

Sec. 38a-148. (Formerly Sec. 38-37b). Redemption of shares of domestic insurance company. Notice. Determination of fair value. (a) Any stock of a domestic insurance corporation licensed to conduct an insurance business in this state may be made subject to redemption by that corpo…

Sec. 38a-149. (Formerly Sec. 38-38). Interlocking directorate. Any person may be a director in two or more insurance corporations when such interlocking directorate is not used as a means of substantially lessening competition or tending to create a monopoly. (1949 Rev., S. 6094.…

Sec. 38a-150. (Formerly Sec. 38-39). Monopoly. Complaint and hearing. Cease and desist order. (a) Whenever the commissioner has reason to believe that there is a violation of section 38a-146 or 38a-149, he shall serve upon the insurance corporation or director concerned a complai…

Sec. 38a-151. (Formerly Sec. 38-34). Reduction of capital stock. Any insurance company, with the consent of the commissioner, may reduce its capital stock to such extent, and change the par value of its shares to such amount, as is approved by at least two-thirds of its board of …

Sec. 38a-152. (Formerly Sec. 38-35). Issuance of stock in exchange for stock of another company. (a) Any domestic insurance company with capital stock may, with the prior approval of the commissioner, issue its capital stock within the limit of its authorized capital in exchange …

Sec. 38a-153. (Formerly Sec. 38-42). Merger or consolidation of companies. (a) Any domestic insurance company may, with the prior approval of the commissioner, merge or consolidate with one or more other domestic insurance companies or with one or more foreign or alien insurance …

Sec. 38a-154. (Formerly Sec. 38-36). Filing of the certificate of merger or consolidation with the Secretary of the State. If the commissioner approves and authorizes the proposed merger or consolidation or issuance and exchange of stock, such merger or consolidation or issuance …

Sec. 38a-155. (Formerly Sec. 38-42b). Conversion of hospital service corporation and medical service corporation to mutual insurance company. Procedure. Authorized agents to sell products. (a) Any consolidated hospital service corporation and medical service corporation organized…

Sec. 38a-156. Definitions. As used in this section and sections 38a-156a to 38a-156m, inclusive: (1) “Adoption date” means the date a mutual insurer's board of directors adopts a plan of reorganization; (2) “Commissioner” means the Insurance Commissioner; (3) “Converted company” …

Sec. 38a-156a. Reorganization of domestic mutual insurer as domestic stock insurer owned by mutual holding company. Plan of reorganization. Approval. Use of the word “mutual” in name. Voting stock ownership. Prohibited fees, commission or other consideration. (a) A domestic mutua…

Sec. 38a-156b. Mutual holding company requirements. (a) No mutual holding company shall engage in the business of insurance. (b) A mutual holding company shall comply with all applicable provisions of law relating to the powers, duties and liabilities of corporations. (c) A mutua…

Sec. 38a-156c. Amendments to articles of incorporation and plan of reorganization. (a) A reorganized insurer may amend its articles of incorporation that have been adopted pursuant to a plan of reorganization and filed with the Secretary of the State, in accordance with subdivisi…

Sec. 38a-156d. Transfer of assets or liabilities and acquisition of subsidiaries by reorganized insurer. (a)(1) A reorganized insurer may, either pursuant to the plan of reorganization or upon the prior approval of the commissioner, on any one or more occasions on or after the ef…

Sec. 38a-156e. Requirements of reorganizing mutual life insurer. Report. (a) In the case of a reorganizing insurer that is a mutual life insurer, upon the effective date the reorganizing insurer shall, at its option, either: (1) (A) Establish a closed block for policyholder divid…

Sec. 38a-156f. Voting stock offerings. (a)(1) The offering of voting stock by a reorganized insurer or intermediate stock holding company to any person other than the mutual holding company or a wholly owned subsidiary thereof, which offering is the first to occur after the effec…

Sec. 38a-156g. Restrictions on stock offerings and stock ownership. (a)(1) Until six months after the completion of an initial public offering, private equity placement or the first issuance of public or private stock or securities convertible into voting stock of a reorganized i…

Sec. 38a-156h. Merger or consolidation of mutual holding companies. Effect on pending court action or proceeding. (a) Two or more mutual holding companies, at least one of which is a domestic company, may merge or consolidate under the laws of any state into a mutual holding comp…

Sec. 38a-156i. Reorganization of domestic mutual insurer with existing domestic or foreign mutual holding company. (a) A domestic mutual insurer may reorganize with an existing domestic or foreign mutual holding company, in which case the plan of reorganization of the domestic mu…

Sec. 38a-156j. Conversion of domestic mutual holding company to domestic stock corporation. Plan of conversion. Approval. Prohibited fees, commission or other consideration. (a) A domestic mutual holding company may convert to a domestic stock corporation pursuant to a plan of co…

Sec. 38a-156k. Proceedings and actions. (a)(1) For a period of ten years from the effective date of a plan of reorganization under section 38a-156a, if any proceedings are brought under chapter 704c or pursuant to such plan of reorganization, naming as a party a domestic stock in…

Sec. 38a-156l. Confidentiality of information, documents and copies related to reorganization, merger, consolidation or conversion. All information, documents and copies of such information and documents obtained by or disclosed to the commissioner or any other person in the cour…

Sec. 38a-156m. Regulations. The commissioner may adopt regulations in accordance with the provisions of chapter 54 to implement the provisions of sections 38a-156a to 38a-156l, inclusive. (P.A. 14-123, S. 14.) History: P.A. 14-123 effective June 6, 2014.

Sec. 38a-156r. Definitions. As used in this section and sections 38a-156s to 38a-156z, inclusive: (1) “Capital” means the capital stock component of statutory surplus, as defined in the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, ve…

Sec. 38a-156s. Division of domestic insurer. Plan of division. Amendment and abandonment. (a) Any domestic insurer may, in accordance with the requirements of sections 38a-156r to 38a-156z, inclusive, divide into two or more resulting insurers pursuant to a plan of division. (b) …

Sec. 38a-156t. Plan of division. Approval by interest holders and governors. (a) Except as provided in subsection (b) or (c) of this section, a domestic insurer shall not file a plan of division with the commissioner unless such plan has been approved in accordance with: (1) All …

Sec. 38a-156u. Plan of division. Approval by commissioner. Notice and hearing. Certificate of approval. (a) A division shall not become effective until it is approved by the commissioner after reasonable notice and a public hearing, if such notice and hearing are deemed by the co…

Sec. 38a-156v. Certificate of division. (a) After a plan of division has been adopted and approved under sections 38a-156r to 38a-156u, inclusive, an officer or duly authorized representative of the dividing insurer shall sign a certificate of division. (b) The certificate of div…

Sec. 38a-156w. Effect of division. (a) When a division becomes effective pursuant to subsection (d) of section 38a-156v: (1) If the dividing insurer has survived the division: (A) It continues to exist; (B) its public organic document, if any, shall be amended as provided in the …

Sec. 38a-156x. Responsibility and liability of resulting insurers. (a) Except as provided in this section, when a division becomes effective, a resulting insurer is responsible: (1) Individually for the policies and other liabilities the resulting insurer issues, undertakes or in…