521D.3 - REPORT OF ACQUISITION AND DISPOSITION OF ASSETS -- INFORMATION REQUIRED -- SCOPE.
521D.3 REPORT OF ACQUISITION AND DISPOSITION OF ASSETS -- INFORMATION REQUIRED -- SCOPE. 1. An acquisition or disposition of assets need not be reported pursuant to section 521D.2 if the acquisition or disposition is not material. For purposes of this chapter, a material acquisition, or the aggregate of any series of related acquisitions, or a disposition, or the aggregate of any series of related dispositions, during any thirty-day period, is one that is nonrecurring, is not in the ordinary course of business, and involves more than five percent of the reporting insurer's total admitted assets as reported in its most recent statutory statement filed with the insurance division of the insurer's state of domicile. 2. For purposes of this chapter, an asset acquisition includes 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 such purpose. For purposes of this chapter, an asset disposition includes every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, whether for the benefit of creditors or otherwise, abandonment, destruction, or other disposition. 3. A report of a material acquisition or disposition of assets shall include all of the following: a. Date of the transaction. b. Manner of the acquisition or disposition. c. Description of the assets involved. d. Nature and amount of the consideration given or received. e. Purpose of, or reason for, the transaction. f. Manner by which the amount of consideration was determined. g. Gain or loss recognized or realized as a result of the transaction. h. Name or names of the person or persons from whom the assets were acquired or to whom they were disposed. 4. An insurer is required to report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves, and such 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 percent of the insurer's capital and surplus.
Section History: Recent Form 94 Acts, ch 1176, §18