33-3-703. Acquisitions and dispositions of assets.
412 words·~2 min read·
/mt/title-33/chapter-3/part-7/33-3-703·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
33-3-703 . Acquisitions and dispositions of assets.
(1)Acquisitions or dispositions of assets that are not material are not required to be reported pursuant to 33-3-702 if the acquisitions or dispositions are not material. For purposes of this part, a material acquisition or the aggregate of any series of related acquisitions during any 30-day period or a disposition or the aggregate of any series of related dispositions during any 30-day period is one that is nonrecurring and not in the ordinary course of business and involves more than 5% of the reporting insurer's total admitted assets as reported in its most recent statutory statement filed with the insurance department of the insurer's state of domicile.
(2)Asset acquisitions subject to this part 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 this purpose.
(3)Asset dispositions subject to this part include each sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, whether for the benefit of creditors or otherwise, abandonment, destruction, or other disposition.
(4)The following information is required to be disclosed in any report of a material acquisition or disposition of assets:
(a)the date of the transaction;
(b)the manner of acquisition or disposition;
(c)the description of the assets involved;
(d)the nature and amount of the consideration given or received;
(e)the purpose or reason for the transaction;
(f)the manner by which the amount of consideration was determined;
(g)the gain or loss recognized or realized as a result of the transaction; and
(h)the names of the persons from whom the assets were acquired or to whom they were disposed.
(5)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 that uses a pooling arrangement or 100% 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 cedes substantially all of its direct and assumed business to a pool if the insurer has less than $1 million 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 5% of the insurer's capital and surplus.