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, isnotintheordinarycourseofbusiness, andinvolvesmorethanfivepercentof
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,orotheracquisition,otherthantheconstruction
or devel
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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, isnotintheordinarycourseofbusiness, andinvolvesmorethanfivepercentof
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,orotheracquisition,otherthantheconstruction
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.
§521D.3, DISCLOSURE OF MATERIAL TRANSACTIONS 2
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.