§ 58-19-1. Findings; purpose; legislative intent.
Article19.
Insurance Holding CompanySystem Regulatory Act.
§ 58‑19‑1. Findings; purpose; legislative intent.
(a) The GeneralAssembly finds that the public interest and the interests of policyholders areor may be adversely affected when any of the following occur:
(1) Control of aninsurer is sought by persons who would utilize such control adversely to theinterests of policyholders.
(2) Acquisition ofcontrol of an insurer would substantially lessen competition or create amonopoly in the insurance business in this State.
(3) An insurer that ispart of a holding company system is caused to enter into transactions orrelationships with affiliated companies on terms that are not fair andreasonable.
(4) An insurer paysdividends to shareholders that jeopardize the financial condition of suchinsurer.
(b) The GeneralAssembly declares that the policies and purposes of this Article are to promotethe public interest by doing all of the following:
(1) Requiring disclosureof pertinent information relating to changes in control of an insurer.
(2) Requiring disclosureby an insurer of material transactions and relationships between the insurerand its affiliates, including certain dividends to shareholders paid by theinsurer.
(3) Providing standardsgoverning material transactions between an insurer and its affiliates. (1989,c. 722, s. 1.)