§ 206 — Definitions applicable to Secs. 206 to 206D

Massachusetts § 206

• Jurisdiction: Massachusetts
• Part I: ADMINISTRATION OF THE GOVERNMENT
• Title XXII: CORPORATIONS
• Ch. 175: INSURANCE

Text

Section 206. As used in sections two hundred and six, two hundred and six A, two hundred and six B, two hundred and six C, and two hundred and six D, the following words shall, unless the context clearly requires otherwise, have the following meaning:—''Affiliate'', an affiliate of, or person affiliated with, a specific person, is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.''Commissioner'', the insurance commissioner, his deputies, or the division of insurance, as appropriate.''Control'', including controlling, controlled by and under common control with, the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or non-management services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by subsection (k) of section 206C that control does not exist in fact. The commissioner may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support such determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.''Division'', the division of insurance.''Enterprise risk'', any activity, circumstance, event or series of events involving 1 or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including, but not limited to, anything that would cause the insurer's risk-based capital to fall into company action level as set forth by the commissioner by regulation or would cause the insurer to be in hazardous financial condition as set forth in section 3 of chapter 175J.''Group-wide supervisor'', the regulatory official authorized to engage in conducting and coordinating group-wide supervision activities and is determined or acknowledged by the commissioner under subsection (y) of section 206C to have sufficient significant contacts with the internationally active insurance group.''Group capital calculation instructions'', the group capital calculation instructions as adopted by the National Association of Insurance Commissioners and as amended by the National Association of Insurance Commissioners from time to time in accordance with the procedures adopted by the National Association of Insurance Commissioners.''Insurance holding company system'', an insurance holding company system consists of two or more affiliated persons, one or more of which is an insurer.''Insurer'', shall have the same meaning as set forth in section one and, in no event, shall include: (1) agencies, authorities or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state; (2) fraternal benefit societies under chapter one hundred and seventy-six or (3) nonprofit medical and hospital service associations under chapters one hundred and seventy-six A and one hundred and seventy-six B.''Internationally active insurance group'', an insurance holding company system that: (i) includes an insurer registered under section 206C; and (ii) meets the following criteria: (a) premiums written in at least 3 countries; (b) the percentage of gross premiums written outside the United States is at least 10 per cent of the insurance holding company system's total gross written premiums and (c) based on a 3–year rolling average, the total assets of the insurance holding company system are at least $50,000,000,000 or the total gross written premiums of the insurance holding company system are at least $10,000,000,000.''National Association of Insurance Commissioners liquidity stress test framework'' or ''Framework'', a publication from the National Association of Insurance Commissioners that includes a history of the National Association of Insurance Commissioners' development of regulatory liquidity stress testing, the scope criteria applicable for a specific data year and the liquidity stress test instructions and reporting templates for a specific data year, such scope criteria, instructions and reporting template as adopted by the National Association of Insurance Commissioners and as amended by the National Association of Insurance Commissioners from time to time in accordance with the procedures adopted by the National Association of Insurance Commissioners.''Person'', a person is an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of the foregoing acting in concert, but shall not include any joint venture partnership exclusively engaged in owning, managing, leasing or developing real or tangible personal property.''Scope criteria'', the designated exposure bases, along with minimum magnitudes thereof for the specified data year, used to establish a preliminary list of insurers considered scoped into the National Association of Insurance Commissioners liquidity stress test framework for that data year, as detailed in the National Association of Insurance Commissioners liquidity stress test framework.''Securityholder'', a securityholder of a specified person is one who owns any security of such person, including common stock, preferred stock, debt obligations and any other security convertible into or evidencing the right to acquire any of the foregoing.''Subsidiary'', a subsidiary of a specified person is an affiliate controlled by such person directly or indirectly through one or more intermediaries.''Voting security'', shall include any security convertible into or evidencing a right to acquire a voting security.