Title 58 — INSURANCE

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.

A registered insurer subject to the provisions of §§ 58-5A-80.1 to 58-5A-80.8 , inclusive, is liable for and shall pay the reasonable expenses of the director's participation in the administration of §§ 58-5A-80.1 to 58-5A-80.8 , inclusive, including the engagement of attorneys, …

An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. This requirement may be satisfied if the insurance group, of which the insurer is a member, maintains a…

Subject to the provisions of §§ 58-5A-85 to 58-5A-88 , inclusive, an insurer, or the insurance group of which the insurer is a member, shall regularly conduct an ORSA consistent with a process comparable to the ORSA guidance manual. The ORSA shall be conducted at least annually b…

The ORSA summary report, or any combination of reports that together contain the information described in the ORSA guidance manual, shall be submitted to the division upon the director's request. The director may request the ORSA summary report no more than annually. If the insur…

ORSA summary reports shall: (1) Include a signature of the insurer or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process attesting to the best of their belief and knowledge that the i…

An insurer shall be exempt from the requirements of §§ 58-5A-81 to 58-5A-93 , inclusive, if: (1) The insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insur…

If an insurer qualifies for exemption pursuant to subdivision 58-5A-85(1), but the insurance group of which the insurer is a member does not qualify for exemption pursuant to subdivision 58-5A-85(2), the ORSA summary report that may be required shall include every insurer within …

An insurer that does not qualify for exemption may apply to the director for a waiver from the requirements of §§ 58-5A-81 to 58-5A-93 , inclusive, based upon unique circumstances. In deciding whether to grant the insurer's request for waiver, the director may consider the type a…

If an insurer that qualifies for an exemption subsequently no longer qualifies for that exemption due to changes in premium 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 i…

Notwithstanding the exemptions from the requirements of §§ 58-5A-81 to 58-5A-93 , inclusive, the director may require that an insurer maintain a risk management framework, conduct an ORSA, and file an ORSA summary report: (1) Based on unique circumstances including the type and v…

The director shall approve any merger or other acquisition of control referred to in §§ 58-5A-3 and 58-5A-45 unless, after a public hearing he finds that: (1) After the change of control the domestic insurer would not be able to satisfy the requirements for the issuance of a lice…

If the director determines that any person fails to comply with the provisions of § 58-5A-3 , 58-5A-3.1 , 58-5A-4 , 58-5A-8 , 58-5A-9 , or 58-5A-45 preventing the full understanding of the enterprise risk to the insurer by the affiliates or by the insurance holding company system…

Documents, materials, or other information, including the ORSA summary report, in the possession of or control of the division that are obtained by, created by, or disclosed to the director or any other person under §§ 58-5A-81 to 58-5A-93 , inclusive, are recognized by this stat…

In order to assist in the performance of the director's regulatory duties regarding ORSA, the director: (1) May, upon request, share documents, materials, or other ORSA-related information, including the confidential and privileged documents, materials, or information subject to …

The sharing of information and documents by the director pursuant to §§ 58-5A-81 to 58-5A-93 , inclusive, does not constitute a delegation of regulatory authority or rule making. The director is solely responsible for the administration, execution, and enforcement of the provisio…

The director shall promulgate rules, pursuant to chapter 1-26 , to carry out ORSA including: (1) Adoption of the NAIC ORSA guidance manual; (2) Definition of terms; (3) Fees; and (4) Timing, form, and content of reports. Source: SL 2017, ch 210 , § 14.

Except as provided in this section and in § 58-5A-95 , the ultimate controlling person of every insurer subject to registration must concurrently file with the registration an annual group capital calculation as directed by the lead state director or commissioner. The report must…

Insurance holding company systems described in this section are exempt from filing the group capital calculation provided in § 58-5A-94 : (1) An insurance holding company system that: (a) Has only one insurer within its holding company structure; (b) Only writes business in its d…

Notwithstanding the provisions of subdivisions 58-5A-95 (3) and (4), if this state is considered the lead state, the director must require the filing of the group capital calculation for U.S. operations for any non-U.S. based insurance holding company system where, after any nece…

The ultimate controlling person of every insurer subject to registration and scoped into the NAIC liquidity stress test framework must file the results of a specific year’s liquidity stress test. The filing must be made to the lead state insurance director or commissioner of the …

The group capital calculation and resulting group capital ratio required under § 58-5A-94 and the liquidity stress test, along with its results and supporting disclosures, required under § 58-5A-97 , are regulatory tools for assessing group risks and capital adequacy and group li…