The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 155 : Disclosure of Material Transactions

• § 8102. Acquisitions and dispositions of assets

  (a)(1) For the purposes of this chapter, asset acquisition shall 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.

  (2) For the purposes of this chapter, asset disposition shall include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment (whether for the benefit of creditors or otherwise), abandonment, destruction, or other disposition.

  (b) The following information is required to be disclosed in any report of a material asset acquisition or disposition:

  (1) Date of the transaction.

  (2) Manner of acquisition or disposition.

  (3) Description of the assets involved.

  (4) Nature and amount of the consideration given or received.

  (5) Purpose of, or reason for, the transaction.

  (6) Manner by which the amount of consideration was determined.

  (7) Gain or loss recognized or realized as a result of the transaction.

  (8) Identity of each person from whom the assets were acquired or to whom they were disposed.

  (c) Materiality. No acquisition or disposition of assets need be reported pursuant to section 8101 of this title if the acquisition or disposition is not material. For purposes of this chapter, a material asset acquisition (or the aggregate of any series of related acquisitions during any 30-day period) or asset disposition (or the aggregate of any series of related dispositions during any 30-day period) is one that is nonrecurring, not in the ordinary course of business, and involves more than five percent of the reporting insurer’s total admitted assets as reported in its most recent annual statement filed with the Department under section 3561 of this title.

  (d) Insurers are required to report material asset acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or a 100 percent reinsurance agreement that affects the solvency and integrity of the insurer’s reserves and such 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 the insurer has less than $1,000,000.00 total direct plus assumed written premiums during the calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement is less than five percent of the insurer’s capital and surplus. (Added 1993, No. 235 (Adj. Sess.), § 6, eff. June 21, 1994.)