Nebraska § 44-2126 Acquisition of control of or merger
with domestic insurer; notice
of proposed divestiture; filing requirements; director; powers

Nebraska Statutes

§ 44-2126 — Acquisition of control of or merger with domestic insurer; notice of proposed divestiture; filing requirements; director; powers

Nebraska·Ch. 44 Insurance

(1)No person other than the issuer shall make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, or seek to acquire, or acquire, in the open market or otherwise, any voting security of a domestic insurer if, after the consummation thereof, such person would, directly or indirectly, or by conversion or by exercise of any right to acquire, be in control of such insurer, and no person shall enter into an agreement to merge with or otherwise to acquire control of a domestic insurer or any person controlling a domestic insurer unless, at the time any such offer, request, or invitation is made or any such agreement is entered into, or prior to the acquisition of such securities if no offer or agreement is involved, such person h

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(1) No
person other than the issuer shall make a tender offer for or a request or
invitation for tenders of, or enter into any agreement to exchange securities
for, or seek to acquire, or acquire, in the open market or otherwise, any
voting security of a domestic insurer if, after the consummation thereof,
such person would, directly or indirectly, or by conversion or by exercise
of any right to acquire, be in control of such insurer, and no person shall
enter into an agreement to merge with or otherwise to acquire control of a
domestic insurer or any person controlling a domestic insurer unless, at the
time any such offer, request, or invitation is made or any such agreement
is entered into, or prior to the acquisition of such securities if no offer
or agreement is involved, such person has filed with the director and has
sent to such insurer, a statement containing the information required by this
section and such offer, request, invitation, agreement, or acquisition has
been approved by the director in the manner prescribed in section 44-2127 .
(2) For purposes of this
section, any controlling person of a domestic insurer seeking to divest his,
her, or its controlling interest in the domestic insurer, in any manner, shall
file with the director, with a copy to the insurer, confidential notice of
its proposed divestiture at least thirty days prior to the cessation of control.
The director shall determine those instances in which the party or parties
seeking to divest or to acquire a controlling interest in an insurer will
be required to file for and obtain approval of the transaction. The information
shall remain confidential until the conclusion of the transaction unless the
director, in his or her discretion, determines that confidential treatment
will interfere with enforcement of this section. If the statement referred
to in subsection (1) of this section is otherwise filed, this subsection shall
not apply.
(3) For purposes of this section,
a domestic insurer includes any person controlling
a domestic insurer unless such person as determined by the director is either
directly or through its affiliates primarily engaged in business other than
the business of insurance. For purposes of this section, person does not include any securities broker holding,
in the usual and customary brokers function, less than twenty percent of the
voting securities of an insurance company or of any person which controls
an insurance company.
(4) The statement required
to be filed with the director under subsection
(1) of this section shall be made under oath and shall contain
the following:
(a) The name and address of each person by whom or on whose behalf the
merger or other acquisition of control referred to in subsection (1) of this
section is to be effected and either:
(i) If such person is an individual, his or her principal occupation,
all offices and positions held during the past five years, and any conviction
of crimes other than minor traffic violations during the past ten years; or
(ii) If such person is not an individual, a report of the nature of
its business operations during the past five years or for such lesser period
as such person and any predecessors thereof have been in existence, an informative
description of the business intended to be done by such person and such person's
subsidiaries, and a list of all individuals who are or who have been selected
to become directors or executive officers of such person or who perform or
will perform functions appropriate to such positions. Such list shall include
for each such individual the information required by subdivision (i) of this
subdivision;
(b) The source, nature, and amount of the consideration used or to be
used in effecting the merger or other acquisition of control, a description
of any transaction in which funds were or are to be obtained for any such
purpose, including any pledge of the insurer's stock or the stock of any of
its subsidiaries or controlling affiliates, and the identity of persons furnishing
such consideration, except that when a source of such consideration is a loan
made in the lender's ordinary course of business, the identity of the lender
shall remain confidential if the person filing such statement so requests;
(c) Fully audited financial information as to the earnings and financial
condition of each acquiring party for the preceding five fiscal years of each
such acquiring party or for such lesser period as such acquiring party and
any predecessors thereof have been in existence and similar unaudited information
as of a date not earlier than ninety days prior to the filing of the statement;
(d) Any plans or proposals which each acquiring party may have to liquidate
such insurer, to sell its assets or merge or consolidate it with any person,
or to make any other material change in its business or corporate structure
or management;
(e) The number of shares of any security referred to in subsection (1)
of this section which each acquiring party proposes to acquire, the terms
of the offer, request, invitation, agreement, or acquisition referred to in
subsection (1) of this section, and a statement as to the method by which
the fairness of the proposal was arrived at;
(f) The amount of each class of any security referred to in subsection
(1) of this section which is beneficially owned or concerning which there
is a right to acquire beneficial ownership by each acquiring party;
(g) A full description of any contracts, arrangements, or understandings
with respect to any security referred to in subsection (1) of this section
in which any acquiring party is involved, including transfer of any of the
securities, joint ventures, loan or option arrangements, puts or calls, guarantees
of loans, guarantees against loss, guarantees of profits, division of losses
or profits, or the giving or withholding of proxies. Such description shall
identify the persons with whom such contracts, arrangements, or understandings
have been entered into;
(h) A description of the purchase of any security referred to in subsection
(1) of this section during the twelve calendar months preceding the filing
of the statement by any acquiring party, including the dates of purchase,
names of the purchasers, and consideration paid or agreed to be paid therefor;
(i) A description of any recommendations to purchase any security referred
to in subsection (1) of this section made during the twelve calendar months
preceding the filing of the statement by any acquiring party or by anyone
based upon interviews or at the suggestion of such acquiring party;
(j) Copies of all tender offers for, requests, or invitations for tenders
of, exchange offers for, and agreements to acquire or exchange any securities
referred to in subsection (1) of this section and, if distributed, of additional
soliciting material relating thereto;
(k) The term of any agreement, contract, or understanding made with
or proposed to be made with any broker-dealer as to solicitation of securities
referred to in subsection (1) of this section for tender and the amount of
any fees, commissions, or other compensation to be paid to broker-dealers
with regard thereto;
(l) An agreement by the
person required to file the statement referred to in subsection (1) of this
section that he, she, or it will provide the annual report specified in subsection
(12) of section 44-2132 for as long as control exists;
(m) An acknowledgment
by the person required to file the statement referred to in subsection (1)
of this section that the person and all subsidiaries within his, her, or its
control in the insurance holding company system will provide information to
the director upon request as necessary to evaluate enterprise risk to the
insurer; and
(n) Such additional information
as the director may by rule or regulation prescribe as necessary or appropriate
for the protection of policyholders of the insurer or in the public interest.
(5) If the person required
to file the statement is a partnership, limited partnership, syndicate, or
other group, the director may require that the information called for by subsection (4) of this section shall be given with respect
to each partner of such partnership or limited partnership, each member of
such syndicate or group, and each person who controls such partner or member.
If any such partner, member, or person is a corporation or the person required
to file the statement is a corporation, the director may require that the
information called for by subsection (4) of this section shall
be given with respect to such corporation, each officer and director of such
corporation, and each person who is directly or indirectly the beneficial
owner of more than ten percent of the outstanding voting securities of such
corporation.
(6) If any material change
occurs in the facts set forth in the statement filed with the director and
sent to such insurer pursuant to this section, an amendment setting forth
such change, together with copies of all documents and other material relevant
to such change, shall be filed with the director and sent to such insurer
within two business days after the person learns of such change.
(7) If any offer, request,
invitation, agreement, or acquisition referred to in subsection (1) of this
section is proposed to be made by means of a registration statement under
the Securities Act of 1933, in circumstances requiring the disclosure of similar
information under the Securities Exchange Act of 1934, or under a state law
requiring similar registration or disclosure, the person required to file
the statement may utilize such documents in furnishing the information called
for by the statement.

Nebraska § 44-2126 (Acquisition of control of or merger with domestic insurer; notice of proposed divestiture; filing requirements; director; powers) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

National American Insurance Company, a Nebraska Corporation, Timothy J. Hall, Director of the Nebraska Department of Insurance, Intervenor Below-Appellee v. Centra, Inc., a Delaware Corporation Can-Am Investments Limited, a Bahamian Corporation Ammex, Inc., a Michigan Corporation Durarock Underwriters, Ltd., a Barbados Registered Corporation Manual J. Moroun, an Individual Manual J. Moroun, Custodian of the Manual J. Moroun Trust for the Benefit of Matthew T. Moroun, Agnes A. Moroun, an Individual Agnes A. Moroun, Trustee for the M.J. Moroun Irrevocable Trust for Matthew T. Moroun Dean Witter Trust, Inc., a Corporation, National American Insurance Company, a Nebraska Corporation, Timothy J. Hall, Director of the Nebraska Department of Insurance, Intervenor Below-Appellee v. Centra, Inc., a Delaware Corporation Can-Am Investments Limited, a Bahamian Corporation Ammex, Inc., a Michigan Corporation Durarock Underwriters, Ltd., a Barbados Registered Corporation Manual J. Moroun, an Individual Manuel J. Moroun, Custodian of the Manual J. Moroun Trust for the Benefit of Matthew T. Moroun, Agnes A. Moroun, an Individual Agnes A. Moroun, Trustee for the M.J. Moroun Irrevocable Trust for Matthew T. Moroun, Dean Witter Trust, Inc., a Corporation, National American Insurance Company, a Nebraska Corporation, Timothy J. Hall, Director of the Nebraska Department of Insurance, Intervenor Below-Appellee v. Centra, Inc., a Delaware Corporation Can-Am Investments Limited, a Bahamian Corporation Ammex, Inc., a Michigan Corporation Durarock Underwriters, Ltd., a Barbados Registered Corporation Manual J. Moroun, an Individual Manual J. Moroun, Custodian of the Manual J. Moroun Trust for the Benefit of Matthew T. Moroun, Agnes A. Moroun, an Individual Agnes A. Moroun, Trustee for the M.J. Moroun Irrevocable Trust for Matthew T. Moroun Dean Witter Trust, Inc., a Corporation

151 F.3d 780 (Eighth Circuit, 1998)

1 case citations

Opinion No. (2006)

(Nebraska Attorney General Reports, 2006)

Legislative History

Source: Laws 1991, LB 236, § 7; Laws 2012, LB887, § 5. Annotations: The Insurance Holding Company System Act affords the Director of Insurance a chance to review the financial stability of an acquiring company so that the director can determine whether acquisition is in the best interests of state policyholders. CenTra, Inc. v. Chandler Ins. Co., 248 Neb. 844, 540 N.W.2d 318 (1995).