§ 44-2127 — Merger; acquisition; approval by director; hearings; experts

Nebraska § 44-2127

• Jurisdiction: Nebraska
• Ch. 44: Insurance

Text

(1) The director shall approve
any merger or other acquisition of control referred to in subsection (1) of
section 44-2126 unless, after a public hearing thereon, he or she finds that:
(a) After the change of control, the domestic insurer would not be able
to satisfy the requirements for the issuance of a license to write the line
or lines of insurance for which it is presently licensed;
(b) The effect of the merger or other acquisition of control would be
substantially to lessen competition in insurance in this state or tend to
create a monopoly therein;
(c) The financial condition of any acquiring party is such as might
jeopardize the financial stability of the insurer or prejudice the interest
of policyholders of the insurer;
(d) The plans or proposals which the acquiring party has to liquidate
the insurer, to sell its assets or consolidate or merge it with any person,
or to make any other material change in its business or corporate structure
of management are unfair and unreasonable to policyholders of the insurer
and not in the public interest;
(e) The competence, experience, and integrity of those persons who would
control the operation of the insurer are such that it would not be in the
interest of policyholders of the insurer and of the public to permit the merger
or other acquisition of control;
(f) To the extent required under section 44-6115 , an acquisition has
not been approved by the director; or
(g) The acquisition is likely to be hazardous or prejudicial to the
public.
(2) Except as provided in subsection (3) of
this section, the public hearing referred to in subsection (1)
of this section shall be held within thirty days after the statement required
by subsection (1) of section 44-2126 is filed, and at least twenty days' notice
thereof shall be given by the director to the person filing the statement.
Not less than seven days' notice of such public hearing shall be given by
the person filing the statement to the insurer and to such other persons as
may be designated by the director. The director shall make a determination
within the sixty-day period preceding the effective date of the proposed transaction.
At such hearing, the person filing the statement, the insurer, any person
to whom notice of hearing was sent, and any other person whose interest may
be affected thereby shall have the right to present evidence, examine and
cross-examine witnesses, and offer oral and written arguments and in connection
therewith shall be entitled to conduct discovery proceedings in the same manner
as is presently allowed in the district court. All discovery proceedings shall
be concluded not later than three days prior to the commencement of the public
hearing.
(3) If the proposed acquisition
of control will require the approval of more than one director or commissioner
of insurance, the public hearing required by this section may be held on a
consolidated basis upon request of the person filing the statement referred
to in subsection (1) of section 44-2126 . Such person shall file the statement
with the National Association of Insurance Commissioners within five days
after making the request for a public hearing. A director or commissioner
may opt out of a consolidated hearing and shall provide notice to the applicant
of the opt out within ten days after the receipt of the statement. A hearing
conducted on a consolidated basis shall be public and shall be held within
the United States before the directors or commissioners of the states in which
the insurers are domiciled. Such directors or commissioners shall hear and
receive evidence. A director or commissioner may attend such hearing in person
or by telecommunication.
(4) In
connection with a change of control of a domestic insurer, any determination
by the director that the person acquiring control of the insurer shall be
required to maintain or restore the capital of the insurer to the level required
by the laws, rules, and regulations of this state shall be made not later
than sixty days after the date of the director's determination. The director
may retain at the acquiring person's expense any attorneys, actuaries, accountants,
and other experts who are not employees of the Department of Insurance as
may be reasonably necessary to assist the director in reviewing the proposed
acquisition of control.

Legislative History

Source: Laws 1991, LB 236, § 8; Laws 1997, LB 52, § 3; Laws 2002, LB 1139, § 22; Laws 2012, LB887, § 6.