Title 58 — INSURANCE

58-5A-44 Disposition of investment in subsidiary upon cessation of control--Waiver. 58-5A-45 Pre-acquisition notification--Person defined. 58-5A-46 Acquisition and Involved insurer defined--Limited application. 58-5A-47 Application of §§ 58-5A-46 to 58-5A-53 --Exceptions. 58-5A-4…

Any domestic insurer, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries with the approval of the director and within those acquisitions allowed by this title as long as the aggregate investment by the insurer and its sub…

If an insurer ceases to control a subsidiary, it shall dispose of the investment in the subsidiary within three years from the time of the cessation of control or within further time as the director may prescribe upon written request by the insurer. If the investment qualifies fo…

Any person acquiring assets pursuant to § 58-5A-3 shall file a pre - acquisition notification with the director containing the information set forth in § 58-5A-48 thirty days prior to the proposed effective date of the acquisition. Any person failing to file is subject to §

The following definitions shall only apply to §§ 58-5A-47 to 58-5A-53 , inclusive: (1) "Acquisition," any agreement, arrangement, or activity the consummation of which results in a person acquiring directly or indirectly the control of another person, and includes the acquisition…

The provisions of §§ 58-5A-46 to 58-5A-53 , inclusive, apply to any acquisition in which there is a change in control of an insurer authorized to do business in this state except the following: (1) A purchase of securities solely for investment purposes as long as the securities …

An acquisition covered pursuant to the provisions of § 58-5A-47 may be subject to an order pursuant to § 58-5A-69 unless the acquiring or acquired person files a pre-acquisition notification and the waiting period has expired. The director shall give confidential treatment to inf…

The director may enter an order under § 58-5A-67 or 58-5A-69 with respect to an acquisition if there is substantial evidence that the effect of the acquisition lessens competition in any line of insurance in this state to the detriment of consumers or tends to create a monopoly o…

If the person required to file the statement referred to in § 58-5A-3 is a partnership, limited partnership, syndicate or other group, the director may require that the information called for by subdivisions 58-5A-4(1) to (14), inclusive, shall be given with respect to each partn…

Prior to the end of the waiting period, the director on a one-time basis may require the submission of additional needed information relevant to the proposed acquisition, in which event the waiting period shall end on the earlier of the thirtieth day after receipt of the addition…

An order entered pursuant to §§ 58-5A-49 , 58-5A-50 , and 58-5A-69 may not become final earlier than thirty days after it is issued, during which time the insurer may submit a plan or notification of submission of a plan to remedy the anticompetitive impact of the acquisition. Th…

Any person who violates a cease and desist order of the director may, after notice and hearing, be subject to one or more of the following: (1) An administrative fine of not more than ten thousand dollars for every day of violation; and (2) Suspension or revocation of the person'…

Any insurer or other person that fails to make any filing required by §§ 58-5A-46 to 58-5A-52 , inclusive, and that fails to demonstrate a good faith effort to comply with any filing requirement is subject to an administrative fine of not less than two thousand five hundred dolla…

In addition to the filing requirements of §§ 58-5A-23 and 58-5A-35 , each registered insurer shall file with the director a report of all dividends and other distributions to shareholders within fifteen business days following the declaration thereof. However, payment may not be …

Any person within an insurance holding company system subject to registration shall be required to provide to an insurer complete and accurate information reasonably necessary to enable the insurer to comply with the provisions of this chapter. Source: SL 1992, ch 341 , § 18.

A domestic insurer and any person in its insurance holding company system may not enter into transactions, including any amendment or modification of an affiliate agreement previously filed pursuant to this chapter, that is subject to any materiality standard provided in this sec…

A domestic insurer may not enter into transactions which are part of a plan or series of like transactions with persons within the holding company system if the purpose of those separate transactions is to avoid the statutory amounts in § 58-5A-56 and thus the review. If the dire…

The director in making the decision to approve or disapprove the transactions in §§ 58-5A-56 and 58-5A-57 shall consider whether the transactions comply with the standards set forth in § 58-5A-32 and whether they may adversely affect the interests of policyholders or of the insur…

The director shall be notified within thirty days of any investment of the domestic insurer in any one corporation if the total investment in the corporation by the insurance holding company system exceeds ten percent of the corporation's voting securities. Source: SL 1992, ch 34…

If any partner, member, or person is a corporation or the person required to file the statement referred to in § 58-5A-3 is a corporation, the director may require that the information called for by subdivisions 58-5A-4(1) to (14), inclusive, shall be given with respect to a corp…

No security, which is the subject of any acquisition, agreement, or arrangement, or which is acquired or to be acquired, in contravention of the provisions of this chapter or order issued by the director, may be voted at any shareholder's meeting, or may be counted for quorum pur…

58-5A-73 Additional investments by domestic insurer. 58-5A-74 Determining whether investments meet applicable requirements. 58-5A-75 Investments subject to chapter 58-27 . 58-5A-76 Application to insurer not a member of same holding company. 58-5A-77 Dividends paid from earned su…

Every director or officer of an insurance holding company system who knowingly violates, participates in, or assents to, or who knowingly permits any of the officers or agents of the insurer to engage in transactions or make investments which have not been properly reported or su…

If any insurer subject to this chapter or any director, officer, employee, or agent has engaged in any transaction or entered into a contract which is subject to §§ 58-5A-32 , 58-5A-34 , 58-5A-35 , 58-5A-56 , 58-5A-58 , and 58-5A-59 and which would not have been approved had appr…

If it appears to the director that any insurer or any director, officer, employee, or agent thereof has knowingly committed a violation of this chapter, the director may request of the attorney general that criminal proceedings be instituted in the circuit court of Hughes County.…

Any officer, director, or employee of an insurance holding company system who knowingly subscribes to or makes or causes to be made any false statements or false reports or false filings with the director is guilty of a Class 6 felony. Source: SL 1992, ch 341 , § 32.

If an order for conservation, liquidation, or rehabilitation of a domestic insurer has been entered, the receiver may recover on behalf of the insurer: (1) From any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of di…

If any person has committed a violation of this chapter which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the director may, suspend, revoke, or refuse to renew the insurer's license or authority to do business in this stat…

The filing of an appeal to the circuit court for any administrative act shall stay the application of any rule, order, or other action of the director to the appealing party unless the court, after giving the party notice and an opportunity to be heard, determines that a stay wou…

58-5A-52 Fine, suspension, or revocation for violation of cease and desist order. 58-5A-53 Failure to comply with filing requirements--Fine. 58-5A-54 Report of dividends and distributions to shareholders--Time limit. 58-5A-55 Persons subject to registration to provide complete an…

If any material change occurs in the facts set forth in the statement filed with the director and sent to such insurer pursuant to § 58-5A-3 , an amendment setting forth such change, together with copies of all documents and other material relevant to such change, shall be filed …

The director may promulgate rules pursuant to chapter 1-26 covering requirements, standards, criteria, and limitations on acquisitions, mergers, and divestitures; notification of acquisitions or divestitures and the format for notification; competitive impact and the plans to rem…

Application of §§ 58-5A-60 and

For the purposes of this chapter, the situs of the ownership of the voting securities of a domestic insurer in a holding company system shall be construed to be in this state. Source: SL 1992, ch 341 , § 39.

Whether any investment pursuant to § 58-5A-73 meets the applicable requirements of that section is to be determined before the investment is made, by calculating the applicable investment limitations as though the investment had already been made, taking into account the then out…

Investments in common stock, preferred stock, debt obligations, or other securities of subsidiaries made pursuant to § 58-5A-73 are subject to chapter 58-27 . Source: SL 1992, ch 341 , § 41.

Nothing contained in this chapter authorizes or permits any transactions which, in the case of an insurer not a member of the same holding company system, would be otherwise contrary to law. Source: SL 1992, ch 341 , § 44.

Insurers subject to this chapter may only pay dividends from earned surplus excluding surplus arising from unrealized capital gains or revaluation of assets. The director may promulgate rules pursuant to chapter 1-26 covering requirements for ordinary dividends including those fo…

Pursuant to the provisions of §§ 58-5A-78 to 58-5A-80 , inclusive, the director may participate in a supervisory college for any domestic insurer registered pursuant to this chapter that is part of an insurance holding company system with international operations to determine com…

Each registered insurer subject to §§ 58-5A-78 to 58-5A-80 , inclusive, is liable for and shall pay the reasonable expenses of the director's participation in a supervisory college, including reasonable travel expenses. A supervisory college may be convened as either a temporary …

If any offer, request, invitation, agreement, or acquisition referred to in § 58-5A-3 is proposed to be made by means of a registration statement under the Securities Act of 1933 or in circumstances requiring the disclosure of similar information under the Securities Exchange Act…

The director may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including any state, federal, and international regulatory agency to assess the business strategy, financial position, legal and regulatory posit…

The director may act as the group-wide supervisor for any internationally active insurance group in accordance with the provisions of this section. The director may also acknowledge another regulatory official as the group-wide supervisor if the internationally active insurance g…

In cooperation with other state, federal, and international regulatory agencies, the director shall identify a single group-wide supervisor for an internationally active insurance group. The director may determine that the director is the appropriate group-wide supervisor for an …

Notwithstanding any other provision in §§ 58-5A-80.1 to 58-5A-80.9, inclusive, if another regulatory official is acting as the group-wide supervisor of an internationally active insurance group, the director shall acknowledge that regulatory official as the group-wide supervisor.…

The director, as provided in § 58-5A-37 , may collect any information necessary to determine if the director may act as the group-wide supervisor of an internationally active insurance group or if the director may acknowledge another regulatory official to act as the group-wide s…

If the director is the group-wide supervisor for an internationally active insurance group, the director may engage in any of the following group-wide supervision activities: (1) Assess the enterprise risks within the internationally active insurance group to ensure that: (a) The…

If the director acknowledges that another regulatory official from a jurisdiction that is not accredited by the NAIC is the group-wide supervisor, the director may reasonably cooperate, through supervisory colleges, with group-wide supervision undertaken by the group-wide supervi…

The director may enter into any agreement with or obtain documentation from any insurer registered under this chapter, any affiliate of the insurer, and any other state, federal, and international regulatory agency for members of the internationally active insurance group, that p…

The director may promulgate rules, pursuant to chapter 1-26 , establishing requirements, standards, criteria, and limitations for group-wide supervisors. Source: SL 2020, ch 213 , § 9.