§ 58-3-160. Sale of company or major reorganization; license to be restricted. - North Carolina Statutes

§58‑3‑160.  Sale of company or major reorganization; license to berestricted.

The Commissioner shallrestrict the license by prohibiting new or renewal insurance businesstransacted in this State by any licensed insurer that, in anticipation of asale of the insurer to new owners or a major reorganization of the business ormanagement of the insurer, transfers all of its existing insurance business toanother insurer through an assumption reinsurance agreement or does not writeany new insurance business for over one year.  The restriction shall remain inforce until after the insurer has filed the following information with theCommissioner and the Commissioner has granted approval:

(1)        Biographicalinformation in a form acceptable to the Commissioner for each new owner,director, or management person;

(2)        A detailed andcomplete plan of operation describing the kinds of insurance to be written andthe method in which the reorganized insurer will perform its various functions;

(3)        Financialprojections of the anticipated operational results of the reorganized insurerfor the succeeding three years based on the capitalization of the reorganizedinsurer and its plan of operation, which must be prepared by a properlyqualified individual, be in sufficient detail for a complete analysis to beperformed, and be accompanied by a list of the assumptions used in making theprojections; and

(4)        Any otherinformation the Commissioner considers to be pertinent for a proper analysis ofthe reorganized insurer. (1991, c. 681, s. 10.)