§ 58-19-5. Definitions. - North Carolina Statutes

§ 58‑19‑5. Definitions.

As used in this Article,unless the context requires otherwise, the following terms have the followingmeanings:

(1)        An"affiliate" of or person "affiliated" with a specificperson is a person that indirectly through one or more intermediaries ordirectly controls, is controlled by, or is under common control with the personspecified.

(2)        "Control",including the terms "controlling", "controlled by", and"under common control with", means the direct or indirect possessionof the power to direct or cause the direction of the management and policies ofa person, whether through the ownership of voting securities, by contract otherthan a commercial contract for goods or nonmanagement services, or otherwise.Control is presumed to exist if any person directly or indirectly owns,controls, holds with the power to vote, or holds proxies representing, tenpercent (10%) or more of the voting securities of any other person. Thispresumption may be rebutted by a showing made in the manner provided by G.S. 58‑19‑25(j)that control does not exist in fact. The Commissioner may determine, afterfurnishing all persons in interest notice and opportunity to be heard andmaking specific findings of fact to support such determination, that controlexists in fact, notwithstanding the absence of a presumption to that effect.

(3)        "Insuranceholding company system" means an entity comprising two or more affiliatedpersons, one or more of which is an insurer.

(4)        "Insurer"includes a person subject to Articles 65 and 66 or 67 of this Chapter."Insurer" does not include (1) an agency, authority, orinstrumentality of the United States; any of its possessions and territories;the Commonwealth of Puerto Rico; the District of Columbia; nor a state or politicalsubdivision of a state; nor (2) fraternal benefit societies or fraternalorders.

(5)        "Person"means an individual, corporation, partnership, limited liability company,association, joint stock company, trust, unincorporated organization, or anysimilar entity or any combination of the foregoing acting in concert.

(6)        A "securityholder" of a specified person is one who owns any security of such person,including common stock, preferred stock, debt obligations, or any othersecurity convertible into or evidencing the right to acquire any of theforegoing.

(7)        A"subsidiary" of a specified person is an affiliate controlled by suchperson indirectly through one or more intermediaries or directly.

(8)        "Votingsecurity" includes any security convertible into or evidencing a right toacquire a voting security. (1989, c. 722, s. 1; 1995, c. 517, ss. 9, 10; 2001‑223,s. 16.1.)