Sec.38a-138-7a. Confidential notification of proposed divestiture

(a) If any person controlling a domestic insurance company is seeking to divest in any manner such person’s controlling interest in such insurance company, that person shall file, pursuant to section 38a-130 of the Connecticut General Statutes, with the Commissioner and send to such insurance company a confidential notice of the proposed divestiture and information relating to the proposed divestiture, except if a Form A statement has been filed with the Commissioner pursuant to section 38a-130(a)(2)(A) of the Connecticut General Statutes.

(b) Prior approval by the Commissioner of a proposed divestiture is required if:

(1) Immediately following the divestiture of control the domestic insurer would not be able to satisfy the requirements for the issuance of a new license to write the line or lines of insurance for which the insurer is presently licensed;

(2) The effect of the divestiture of control would be to substantially lessen the competition in this state or tend to create a monopoly herein;

(3) The effect of the divestiture is to liquidate the insurance company, cause the sale of such insurance company’s assets or cause such insurance company to consolidate or merge with any person, or cause any other material change to the business or corporate structure or management that is unfair and unreasonable to policyholders of the insurance company and not in the public interest;

(4) As a result of the divestiture, a lack of competence, trustworthiness, experience and integrity of the persons who would control the operation of the domestic insurer would cause the change of control to not be in the best interest of the insurer’s policyholders and the public;

(5) The divestiture will create a change of control which is likely to be hazardous or prejudicial to those buying insurance;

(6) The divestiture of control may jeopardize the financial stability of the domestic insurer or prejudice the interest of the domestic insurer’s policyholders and other claimants; or

(7) The divestiture of control would violate the law of this state or another state or the United States.

(Effective June 27, 2013; Amended December 3, 2018)