20-518
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20-518. Acquisitions and dispositions of assets A. An acquisition or disposition of assets that is not material does not have to be reported pursuant to section 20-517. B. Asset acquisitions that are subject to section 20-517 and this section 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 these purposes. C. Asset dispositions that are subject to section 20-517 and this section include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, abandonment, destruction or other disposition. D. A report of a material acquisition or disposition of assets pursuant to section 20-517 shall disclose the following information: 1. The date of the transaction. 2. The manner of acquisition or disposition. 3. A description of the assets involved. 4. The nature and amount of the consideration given or received. 5. The purpose of or reason for the transaction. 6. The manner by which the amount of consideration was determined. 7. The gain or loss that is recognized or realized as a result of the transaction. 8. The names of the persons from whom the assets were acquired or to whom the assets were disposed. E. An insurer shall report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers that utilized a pooling arrangement or one hundred per cent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer 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 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. F. For the purposes of this section and section 20-517, a material acquisition, including the aggregate of any series of acquisitions during any thirty day period, or a material disposition, including the aggregate of any series of related dispositions during any thirty day period, is one that is nonrecurring, that is not in the ordinary course of business and that involves more than five per cent of the reporting insurer's total admitted assets as reported in its most recent statutory statement that is filed with the director. |