(a)Except as exempted in subsection (b) of this section, §§ 23-63-525 - 23-63-528 apply to any acquisition in which there is a change in control of an insurer authorized to do business in this state.
(b)Sections 23-63-525 - 23-63-528 shall not apply to the following:
(1)An acquisition subject to approval or disapproval by the Insurance Commissioner pursuant to §§ 23-63-506 - 23-63-513 ;
(2)A purchase of securities solely for investment purposes, so long as the securities are not used by voting or otherwise to cause or attempt to cause the substantial lessening of competition in any insurance market in this state. If a purchase of securities results in a presumption of control under § 23-63-503(2) , it is not solely for investment purposes unless the commissioner of the insurer's state
Free access — add to your briefcase to read the full text and ask questions with AI
(a) Except as exempted in subsection (b) of this section, §§ 23-63-525 - 23-63-528 apply to any acquisition in which there is a change in control of an insurer authorized to do business in this state. (b) Sections 23-63-525 - 23-63-528 shall not apply to the following: (1) An acquisition subject to approval or disapproval by the Insurance Commissioner pursuant to §§ 23-63-506 - 23-63-513 ; (2) A purchase of securities solely for investment purposes, so long as the securities are not used by voting or otherwise to cause or attempt to cause the substantial lessening of competition in any insurance market in this state. If a purchase of securities results in a presumption of control under § 23-63-503(2) , it is not solely for investment purposes unless the commissioner of the insurer's state of domicile accepts a disclaimer of control or affirmatively finds that control does not exist and such a disclaimer action or affirmative finding is communicated by the domiciliary commissioner to the commissioner of this state; (3) The acquisition of a person by another person when both persons are neither directly nor through affiliates primarily engaged in the business of insurance, if preacquisition notification is filed with the commissioner in accordance with § 23-63-527(b) thirty (30) days prior to the proposed effective date of the acquisition. However, such a preacquisition notification is not required for exclusion if the acquisition would otherwise be excluded from §§ 23-63-525 - 23-63-530 by any other subdivision of this subsection; (4) The acquisition of already affiliated persons; (5) (A) An acquisition if, as an immediate result of the acquisition: (i) In no market would the combined market share of the involved insurers exceed five percent (5%) of the total market; (ii) There would be no increase in any market share; or (iii) In no market would the combined market share of the involved insurers exceed twelve percent (12%) of the total market, and the market share increases by more than two percent (2%) of the total market. (B) For purposes of this subdivision (b)(5), a "market share" means a direct written insurance premium in this state for a line of business as contained in the annual statement required to be filed by insurers licensed to do business in this state; (6) An acquisition for which a preacquisition notification would be required pursuant to § 23-63-527 , due solely to the resulting effect on the ocean marine insurance line of business; or (7) An acquisition of an insurer whose domiciliary commissioner affirmatively finds that such an insurer is in failing condition, and there is a lack of a feasible alternative to improving such a condition, and the public benefits of improving such an insurer's condition through acquisition exceed the public benefits that would arise from not lessening competition. The findings must be communicated by the domiciliary commissioner to the commissioner of this state.