Sec. 38a-67a. Acquisitions and dispositions of assets, reporting requirement waived, when. Asset acquisitions and dispositions, defined. Information required to be disclosed.
Sec. 38a-67a. Acquisitions and dispositions of assets, reporting requirement
waived, when. Asset acquisitions and dispositions, defined. Information required
to be disclosed. (a) No acquisitions or dispositions of assets need be reported pursuant
to section 38a-67 if the acquisitions or dispositions are not material. For purposes of
sections 38a-67 to 38a-67b, inclusive, a material acquisition, or the aggregate of any
series of related acquisitions during any thirty-day period or disposition, or the aggregate
of any series of related dispositions during any thirty-day period, is one that is nonrecurring and not in the ordinary course of business and involves more than five per cent
of the reporting insurer's total admitted assets as reported in its most recent statutory
statement filed with the insurance department of the insurer's state of domicile.
(b) (1) Asset acquisitions subject to sections 38a-67 to 38a-67b, inclusive, include
every purchase, lease, exchange, merger, consolidation, succession or other acquisition
other than the construction or development of real property by or for the reporting insurer
or the acquisition of materials for such purpose.
(2) Asset dispositions subject to sections 38a-67 to 38a-67b, inclusive, include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment,
whether for the benefit of creditors or otherwise, abandonment, destruction or other
disposition.
(c) (1) The following information shall be disclosed in any report of a material
acquisition or disposition of assets:
(A) Date of the transaction;
(B) Manner of acquisition or disposition;
(C) Description of the assets involved;
(D) Nature and amount of the consideration given or received;
(E) Purpose of, or reason for, the transaction;
(F) Manner by which the amount of consideration was determined;
(G) Gain or loss recognized or realized as a result of the transaction; and
(H) Name of the person or persons from whom the assets were acquired or to whom
they were disposed.
(2) Insurers are required to report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which
utilizes a pooling arrangement or one hundred per cent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and such insurer has ceded
substantially all of its direct and assumed business to the pool. An insurer is deemed to
have ceded substantially all of its direct and assumed business to a pool if the insurer
has less than one million dollars in total direct plus assumed written premiums during
a calendar year that are not subject to a pooling arrangement and the net income of the
business not subject to the pooling arrangement represents less than five per cent of the
insurer's capital and surplus.
(P.A. 95-168, S. 6.)