§ 58-10-60. Acquisitions and dispositions of assets.
§ 58‑10‑60. Acquisitions and dispositions of assets.
(a) Insurers do nothave to report acquisitions or dispositions under G.S. 58‑10‑55 ifthey are not material. For the purposes of this Part, a material acquisition orthe aggregate of any series of related acquisitions during any 30‑dayperiod, or a material disposition or the aggregate of any series of relateddispositions during any 30‑day period, is one that is nonrecurring, notin the ordinary course of business, and involves more than five percent (5%) ofthe insurer's total admitted assets as reported in its most recent financialstatement filed with the Department.
(b) Asset acquisitionssubject to this Part include every purchase, lease, exchange, merger,consolidation, succession, or other acquisition, other than the construction ordevelopment of real property by or for the insurer or the acquisition ofmaterials for that purpose. Asset dispositions subject to this Part includeevery sale, lease, exchange, merger, consolidation, mortgage, hypothecation,assignment for the benefit of creditors or otherwise, abandonment, destruction,or other disposition.
(c) The followinginformation shall be disclosed in any report under this section:
(1) Date of thetransaction.
(2) Manner ofacquisition or disposition.
(3) Description of theassets involved.
(4) Nature and amount ofthe consideration given or received.
(5) Purpose of, orreason for, the transaction.
(6) Manner by which theamount of consideration was determined.
(7) Gain or lossrecognized or realized as a result of the transaction.
(8) Name of each personfrom whom the assets were acquired or to whom they were disposed.
(d) Every insurer shallreport material acquisitions and dispositions on a nonconsolidated basis unlessthe insurer is part of a consolidated group of insurers that uses a poolingarrangement or one hundred percent (100%) reinsurance agreement that affectsthe solvency and integrity of the insurer's reserves and the insurer cededsubstantially all of its direct and assumed business to the pool. An insurercedes substantially all of its direct and assumed business to a pool if theinsurer has less than one million dollars ($1,000,000) total direct plusassumed written premiums during a calendar year that are not subject to apooling arrangement and the net income of the business not subject to thepooling arrangement represents less than five percent (5%) of the insurer'scapital and surplus. (1995, c. 318, s. 1.)