26.1-07 Consolidation or Reinsurance of Domestic Companies
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<![CDATA[CHAPTER 26.1-07CONSOLIDATION OR REINSURANCE OF DOMESTIC COMPANIES26.1-07-01. Domestic companies - Consolidation - Reinsurance. As used in thischapter, "consolidate" includes consolidation and merger and "reinsurance" includes only those<br>obligations ceded or assumed by an assumption agreement. An "assumption agreement" is one<br>that transfers all of the direct insurer's obligations under policies of insurance to another insurer<br>and relieves the transferring insurer of any obligations under the policies. A domestic insurance<br>company organized on the stock, mutual, stipulated premium, or assessment plan may not<br>consolidate with any other company, or reinsure its risks or any part thereof with any other<br>company, or assume or reinsure the whole or any portion of the risks of any other company,<br>except in the manner provided by this chapter.26.1-07-02.Petition for allowance of consolidation or reinsurance.When anycompany described in section 26.1-07-01 proposes to consolidate with any other company, or to<br>enter into any contract of reinsurance, it must file its petition with the commissioner setting forth<br>the terms and conditions of the proposed consolidation or reinsurance contract and asking for<br>approval or modification as provided by this chapter. The company shall file as an exhibit to the<br>petition the proposed consolidation or reinsurance contract.26.1-07-03.Profit by officer or employee prohibited.An officer of a companypetitioning for the right to consolidate or to reinsure and an officer or employee of the state may<br>not receive any compensation or gratuity, either directly or indirectly, for aiding, promoting, or in<br>any manner assisting in the consolidation or reinsurance.26.1-07-04. Notice of petition for consolidation or reinsurance. When a petition isfiled, the commissioner, within thirty days after filing of the petition, shall issue an order requiring<br>notice by mail to each policyholder of the domestic company if any of its policyholders are being<br>reinsured or it is proposing to consolidate with another company, of the pendency of the petition<br>and of the time when and place where a hearing on the petition will be held. The hearing must<br>be scheduled not more than ninety days from the date of the order. The commissioner shall<br>publish the order of notice and the petition in five newspapers, one of which must be a daily<br>newspaper published at the state capital, at least two weeks before the hearing upon the petition.<br>By mutual agreement between the petitioning company and the commissioner, the timeframe set<br>forth in this section may be modified, changed, or extended.26.1-07-05. Commissioner to hear petition - General duties. Repealed by S.L. 1995,ch. 280, </p>
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