Sec. 32-533. Exemption from regulation for exempt insurers, banking companies and investment companies. Fee and charges.
Sec. 32-533. Exemption from regulation for exempt insurers, banking companies and investment companies. Fee and charges. (a) Exempt insurers shall not generally be subject to regulation by the Insurance Department and exempt banking companies and exempt investment companies shall not generally be subject to regulation by
the Department of Banking, except that each exempt company shall, no later than March
thirty-first of each year, file a certificate with the appropriate department, containing:
(1) The full name and address of the company and each of the officers and directors
thereof; (2) a statement that the company has a net worth which is adequate for the
applicant to transact business; (3) a statement that each director and officer of the exempt
company is of good character, competent to perform his functions with respect to the
exempt company and collectively adequate to manage the business; (4) a statement that
the company is transacting its business in a safe and sound manner and shall maintain
itself in a safe and sound condition; (5) a statement that the company was engaged during
the most recent fiscal year completed, and is engaging in the current fiscal year, only in
exempt activities; (6) financial statements for the exempt company, including a balance
sheet, a statement of income or loss, a statement of changes in capital accounts and a
statement of changes in financial position, for or as of the end of such fiscal year, which
have been audited by and contain an unqualified opinion from an independent certified
public accountant in accordance with generally accepted accounting principles; (7) a
diagram disclosing the exact ownership structure of the exempt company, including all
direct, intermediate and ultimate owners of the company, whether owned individually,
in partnership or through another entity, provided an exempt mutual fund investment
company shall not be required to disclose its owners but shall disclose the ownership
of the exempt mutual fund investment management companies who perform services
for it; and (8) a statement that the exempt company has engaged, and in the future shall
engage, only in exempt activities unless and until election to revoke is filed in accordance
with the provisions of subsection (b) of section 32-532. Such certificate shall be in
writing and certified as substantially correct by the president, vice-president or managing
director, attested to by the secretary or the assistant secretary and shall be on a form
prescribed by the appropriate departments.
(b) Each exempt company shall, no later than the date on which it is required to file
the annual certificate required under subsection (a) of this section, pay to the appropriate
department a nonrefundable fee of one thousand dollars to be used for processing the
annual certificate. The Banking Commissioner and the Insurance Commissioner, as
appropriate, may retain legal, financial and examination services, the reasonable cost
of which may be charged against the exempt company, upon determination of any such
commissioner, in such commissioner's discretion, that such services are necessary to
confirm that the exempt company is engaging only in exempt activities and complies
with the "Code of Conduct for Financial Institutions to Assist in the Detection and
Disclosure of Information with Respect to the Criminal Use of the Systems Operated
by Financial Institutions (Money Laundering)".
(P.A. 96-253, S. 4, 12; P.A. 03-84, S. 19.)
History: P.A. 96-253 effective July 1, 1996, and applicable to (1) income years of corporations under chapter 208
commencing on or after January 1, 1996, (2) income years of insurance companies under chapter 207 commencing on or
after January 1, 1996, (3) taxable years of taxpayers under chapter 229 commencing on or after January 1, 1996, or (4)
sales occurring on and after January 1, 1996, as the case may be; (Revisor's note: In Subdiv. (a)(3) the phrase "... the
exempt company are of good character, competent to perform their functions with respect ..." was changed editorially by
the Revisors to "... the exempt company is of good character, competent to perform his functions with respect ..."); P.A.
03-84 changed "Commissioner of Banking" to "Banking Commissioner" and made a technical change in Subsec. (b),
effective June 3, 2003.