§ 26-3-402 — Acquisitions and dispositions of assets

Wyoming § 26-3-402

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 3: AUTHORIZATION OF INSURERS AND

Text

(a) Subject to subsection (c) of this section, asset
acquisitions subject to this article include every purchase,
lease, exchange, merger, consolidation, succession or other
acquisition other than the construction or development of real
property by or for the reporting insurer or the acquisition of
materials for such purpose.
(b) Subject to subsection (c) of this section, asset
dispositions subject to this article include every sale, lease,
exchange, merger, consolidation, mortgage, assignment for the
benefit of creditors or otherwise, abandonment, destruction or
other disposition.
(c) No acquisition or disposition of assets shall be
reported pursuant to W.S. 26-3-401 if the acquisition or
disposition is not material. A material acquisition,
disposition or the aggregate of any series of related
acquisitions or dispositions during any thirty (30) day period,
is one which is:
(i) Nonrecurring;
(ii) Not in the ordinary course of business; and
(iii) Involves more than five percent (5%) of the
reporting insurer's total admitted assets as reported in its
most recent statutory statement filed with the insurance
department of the insurer's state of domicile.
(d) The following information is required to be disclosed
in any report of a material acquisition or disposition of
assets:
(i) Date of the transaction;
(ii) Manner of acquisition or disposition;
(iii) Description of the assets involved;
(iv) Nature and amount of the consideration given or
received;
(v) Purpose of, or reason for, the transaction;
(vi) Manner by which the amount of consideration was
determined;
(vii) Gain or loss recognized or realized as a result
of the transaction; and
(viii) Name of the person from whom the assets were
acquired or to whom they were disposed.
(e) Insurers are 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 (100%) reinsurance
agreement that affects the solvency and integrity of the
insurer's reserves and the 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:
(i) The insurer has less than one million dollars
($1,000,000.00) total direct plus assumed written premiums
during a calendar year that are not subject to a pooling
arrangement; and
(ii) The net income of the business not subject to
the pooling arrangement represents less than five percent (5%)
of the insurer's capital and surplus.