Title 58 — INSURANCE

No information need be disclosed on the registration statement filed pursuant to the provisions of § 58-5A-20 if the information is not material for the purposes of this chapter. Unless the director by rule or order provides otherwise, sales, purchases, exchanges, loans, or exten…

Each registered insurer shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions on forms provided by the division on or before the fifteenth day of the following month in which it learns of each such…

The director shall terminate the registration of any insurer which demonstrates that it no longer is a member of an insurance holding company system. Source: SL 1972, ch 267 , § 19.

Two or more affiliated insurers subject to registration hereunder may file a consolidated registration statement or consolidated reports amending their respective consolidated statements or their individual registration statements so long as such consolidated filings correctly re…

The director may allow any insurer which is authorized to do business in this state and which is part of an insurance holding company system to register on behalf of any affiliated insurer which is required to register under § 58-5A-20 , and to file all information and material r…

The provisions of §§ 58-5A-20 to 58-5A-34 , inclusive, shall not apply to any insurer, information or transaction if and to the extent that the director by rule, regulation, or order shall exempt the same from the provisions hereof as not comprehended within the purposes thereof.…

The ultimate controlling person of each insurer subject to registration shall also file an annual enterprise risk report. The report shall, to the best of the ultimate controlling person's knowledge and belief, identify the material risks within the insurance holding company syst…

No person other than the issuer may make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire, in the open market or otherwise, any voting security of a domestic insurer if, after the con…

For purposes of this chapter, any controlling person of a domestic insurer seeking to divest the controlling interest in the domestic insurer, in any manner, shall file with the director, with a copy to the insurer, confidential notice of its proposed divestiture at least thirty …

Failure to file a registration statement, enterprise risk report, or keep the registration statement current within the time specified in this chapter is a violation of this title. Any insurer failing, without just cause, to file any registration statement or amendment as require…

The provisions for filings required under the provisions of §§ 58-5A-20 to 58-5A-29 , inclusive, except for subsection 58-5A-21(2)(e), shall be satisfied by the simultaneous filing with the director of duplicate copies of all filings of an insurer or person in control of an insur…

Any material transaction by a registered insurer with an affiliate is subject to the following standards: (1) The terms shall be fair and reasonable; (2) The books, accounts, and records of each party shall be maintained to clearly and accurately disclose the precise nature and d…

58-5A-35 Notice to director of extraordinary distribution--Approval by director. 58-5A-36 Application for approval of extraordinary distribution--Contents. 58-5A-37 Examination of insurers and affiliates. 58-5A-38 Grounds for director's examination. 58-5A-38.1 Production of recor…

For purposes of this chapter in determining whether an insurer's surplus to policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered: (1) The size of the insurer …

No insurer subject to this chapter may pay any extraordinary dividend or make any other extraordinary distribution to its stockholders until thirty days after the director has received notice of the declaration thereof and has approved or has not disapproved the payment within th…

Requests for approval of extraordinary dividends or any other extraordinary distribution to security holders shall include the following: (1) The date established for payment of the dividend; (2) A statement as to whether the dividend is to be in cash or other property and, if in…

Subject to the limitations contained in this section and §§ 58-5A-38 to 58-5A-40 , inclusive, and in addition to the powers which the director has under the provision of this title relating to the examination of insurers, the director may examine any registered insurer and the in…

The director shall exercise his power under § 58-5A-37 only if the examination of the insurer under the provisions of this title is inadequate or the interests of the policyholders of such insurer may be adversely affected. Source: SL 1972, ch 267 , § 32.

The director may order any registered insurer to produce records, books, or other information papers in the possession of the insurer or the insurer's affiliates as are reasonably necessary to determine compliance with the provisions of this chapter. The director may order any re…

If the insurer fails to comply with an order made pursuant to § 58-5A-38.1 , the director may examine the registered insurer's affiliates to obtain the information. The director may issue subpoenas, administer oaths, and examine under oath any person for purposes of determining c…

The department may retain at the registered insurer's expense such attorneys, actuaries, accountants, and other experts not otherwise a part of the director's staff as shall be reasonably necessary to assist in the conduct of the examination under §

The statement to be filed with the director as required pursuant to § 58-5A-3 shall be made under oath or affirmation and shall contain the following information: (1) The name and address of each person by whom or on whose behalf the merger or other acquisition of control referre…

Each registered insurer producing for examination records, books, and papers pursuant to § 58-5A-37 shall be liable for and shall pay the expense of such examination. Source: SL 1972, ch 267 , § 34.

Documents, materials, or other information including filings in the possession or control of the Division of Insurance that are obtained by or disclosed to the director or any other person in the course of an examination or investigation made pursuant to this chapter and all info…

Neither the director nor any person who receives documents, materials, or other information while acting under the authority of the director or with whom the documents, materials, or other information are shared pursuant to the provisions of § 58-5A-41 is permitted or required to…

To assist in the performance of the duties assigned to the director pursuant to the provisions of this chapter: (1) The director may, upon request, share documents, materials, or other information, including the confidential and privileged documents, materials, or information, in…

The director must enter into written agreements with the NAIC and any third-party consultant designated by the director governing the sharing and use of information provided pursuant to this chapter that: (1) Specify procedures and protocols regarding the confidentiality and secu…

Any document, material, or other information in the possession or control of the NAIC or a third-party consultant as designated by the director, shared pursuant to this chapter, is confidential by law and privileged, is not subject to subpoena, open records laws, and is not subje…

No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information may occur as a result of disclosure to the director pursuant to this chapter or as a result of sharing as authorized pursuant to this chapter. Source: SL 2015, ch 246 , §…

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…