382.060. Approval of merger or acquisition of control, when--hearing, notice.
Approval of merger or acquisition of control, when--hearing,notice.
382.060. 1. The director shall hold a public hearing onthe proposed merger or other acquisition of control referred toin section 382.040 and shall thereafter approve such merger oracquisition of control unless he finds by a preponderance of theevidence that:
(1) After the change of control the domestic insurerreferred to in section 382.040 would not be able to satisfy therequirements for the issuance of a license to write the line orlines of insurance for which it is presently licensed;
(2) The effect of the merger or other acquisition ofcontrol would be substantially to lessen competition in insurancein this state or tend to create a monopoly therein. In applyingthe competitive standard in this subdivision:
(a) The informational requirements of subsection 3 ofsection 382.095 and the standards of subsection 4 of section382.095 shall apply;
(b) The merger or other acquisition of control shall not bedisapproved if the director finds that any of the situationsmeeting the criteria provided by subsection 4 of section 382.095exist; and
(c) The director may condition the approval of the mergeror other acquisition on the removal of the basis of disapprovalwithin a specified period of time;
(3) The financial condition of any acquiring party is suchas might jeopardize the financial stability of the insurer, orprejudice the interest of its policyholders;
(4) The plans or proposals which the acquiring party has toliquidate the insurer, to sell its assets or to consolidate ormerge it with any person, or to make any other material change inits business or corporate structure or management are unfair andunreasonable to policyholders of the insurer and contrary to thepublic interest;
(5) The competence, experience or integrity of thosepersons who would control the operation of the insurer are suchthat it would be contrary to the interest of policyholders of theinsurer and of the public to permit the merger or otheracquisition of control; or
(6) The acquisition is likely to be hazardous orprejudicial to the insurance buying public.
2. Any disapproval made by the director shall be in writingand shall contain specific findings of fact supporting it.
3. The public hearing referred to above in this sectionshall be held within thirty days after the statement required bysection 382.040 is filed, and at least twenty days' noticethereof shall be given by the director to the person filing thestatement. Not less than seven days' notice of the publichearing shall be given by the person filing the statement to theinsurer and to such other persons and in such manner as may bedesignated by the director. The director shall make adetermination within thirty days after the conclusion of thehearing. At the hearing, the person filing the statement, theinsurer, any person to whom notice of hearing was sent, and anyother person whose interests may be affected thereby shall havethe right to present evidence, examine and cross-examinewitnesses, and offer oral and written arguments and in connectiontherewith may conduct discovery proceedings in the same manner asis presently allowed in the circuit courts of this state. Alldiscovery proceedings shall be concluded not later than threedays prior to the commencement of the public hearing.
4. The director may retain at the acquiring party's expenseany attorneys, actuaries, accountants and other experts nototherwise a part of the director's staff as may be reasonablynecessary to assist the director in reviewing the proposedacquisition of control.
(L. 1971 S.B. 101 § 8, A.L. 1983 H.B. 633 merged with S.B. 333, A.L. 1992 H.B. 1574)