Legislative findings; statement of policy

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    (a)    The General Assembly finds that the public interest and the interest of policyholders and stockholders may be adversely affected when:

        (1)    control of an insurer is sought by a person that would use that control adversely to the best interest of policyholders or stockholders;

        (2)    acquisition of control of an insurer would substantially lessen competition or create a monopoly in the insurance business in the State;

        (3)    an insurer that is part of an insurance holding company system enters into transactions or relationships with affiliates on terms that are not fair and reasonable; or

        (4)    an insurer pays to stockholders dividends that jeopardize the financial condition of the insurer.

    (b)    The purposes of this title include promoting the public interest by:

        (1)    requiring disclosures in acquisitions or mergers;

        (2)    requiring disclosures of material transactions, relationships between an insurer and its affiliates, and dividends to stockholders paid by insurers;

        (3)    requiring disclosures of relevant information about changes in control of insurers;

        (4)    providing standards governing material transactions between an insurer and its affiliates; and

        (5)    establishing penalties for failure to disclose and providing for the disapproval of certain transactions.


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