§ 23-63-503 - Definitions.
23-63-503. Definitions.
As used in this subchapter:
(1) An "affiliate" of, or person "affiliated" with, a specific person, is a person that directly, or indirectly through one (1) or more intermediaries, controls, or is controlled by, or is under common control with, the person specified;
(2) The term "control", including the terms "controlling", "controlled by", and "under common control with" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing ten percent (10%) or more of the voting securities of any other person. This presumption may be rebutted by a showing that control does not exist in fact. After furnishing all persons in interest notice and opportunity to be heard, the Insurance Commissioner may determine that control exists in fact, notwithstanding the absence of a presumption to that effect;
(3) An "insurance holding company system" consists of two (2) or more affiliated persons, one (1) or more of which is an insurer. However, for purposes of this subchapter, the term shall not be deemed to include a domestic insurer or domestic holding company system authorized and doing business solely in this state and which is not affiliated with a foreign or alien insurer;
(4) "Insurer" shall have the same meaning as set forth in 23-60-102, except that "insurer" shall not include:
(A) Agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state;
(B) Fraternal benefit societies; or
(C) Nonprofit medical and hospital service associations;
(5) (A) A "person" is a corporation, partnership, association, joint-stock company, business trust, unincorporated organization, depository corporation, or any similar entity or any combination of the foregoing acting in concert, but a "person" shall not include any securities broker performing no more than the usual and customary broker's function.
(B) A "person" is also an individual, only insofar as that term is used in 23-63-506, and this subdivision (5)(B) is not intended to affect in any way the exemption of domestic insurers or domestic holding company systems under 23-63-504;
(6) A "subsidiary" of a specified person is an affiliate controlled by the person directly or indirectly through one (1) or more intermediaries;
(7) A "security holder" of a specified person is one who owns any security of such a person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing; and
(8) "Voting security" shall include any security convertible into or evidencing a right to acquire a voting security.