Maine § 24-A §1157 Investment in subsidiaries

Maine Statutes

§ 24-A §1157 — Investment in subsidiaries

Maine·Title 24-A MAINE INSURANCE CODE·Ch. 13-A INVESTMENTS OF LIFE INSURERS AND LIFE AND HEALTH INSURERS

1.Investment or acquisition. Subject to the limitations contained in subsection 5, an insurer may invest in, or otherwise acquire, subsidiaries engaged or organized to engage in any businesses lawful under the laws of the jurisdictions in which those subsidiaries are organized.

2.Authorization. Except as provided in section 1153, subsection 3, investments in subsidiaries authorized by this section may not be authorized under any other section of this chapter.

3.Superintendent; order of disposition. At any time after the acquisition by the insurer of any subsidiary, other than a holding company engaged solely in the ownership or control of other subsidiaries, or a subsidiary referred to in subsection 5, paragraph B, subparagraph (1) or (2), the superintendent may order its disposition if

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1.
Investment or acquisition.
Subject to the limitations contained in subsection 5, an insurer may invest in, or otherwise acquire, subsidiaries engaged or organized to engage in any businesses lawful under the laws of the jurisdictions in which those subsidiaries are organized.
2.
Authorization.
Except as provided in section 1153, subsection 3, investments in subsidiaries authorized by this section may not be authorized under any other section of this chapter.
3.
Superintendent; order of disposition.
At any time after the acquisition by the insurer of any subsidiary, other than a holding company engaged solely in the ownership or control of other subsidiaries, or a subsidiary referred to in subsection 5, paragraph B, subparagraph (1) or (2), the superintendent may order its disposition if the superintendent finds, after notice and an opportunity to be heard, that its continued retention is materially adverse to the interests of the insurer's policyholders. The insurer has at least 36 months to effect the disposition. If that disposition is not so effected, the subsidiary may not thereafter be allowed as an asset of the insurer.
4.
Name.
The name of any subsidiary may not be such as to mislead or deceive the public.
5.
Limitations.
Subject to the exceptions in paragraph B, investments in subsidiaries of an insurer are limited as follows.
6.
Valuation of subsidiary stock.
In determining the financial condition of an insurer, all investments made directly or indirectly in the stock of its subsidiaries must be valued in accordance with section 901‑A and any rules adopted under that section.
7.
Application of law.
Except as provided in section 1155, investments in subsidiaries made pursuant to this section are not subject to any other restrictions or prohibitions contained in this chapter.

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Legislative History

PL 1987, c. 399, §14 (NEW). PL 1993, c. 313, §29 (AMD). PL 1993, c. 502, §3 (AMD). PL 1993, c. 502, §5 (AFF). PL 1999, c. 715, §14 (AMD). PL 2001, c. 72, §§15, 16 (AMD). PL 2013, c. 238, Pt. A, §31 (AMD). PL 2013, c. 238, Pt. A, §34 (AFF). RR 2021, c. 1, Pt. B, §191 (COR). RR 2021, c. 2, Pt. A, §69 (COR).