§ 7-102. Legislative findings; statement of policy [Subject to amendment effective January 1, 2014; amended version follows this section]

   (a) Legislative findings. -- 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) Statement of policy. -- 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; and

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

HISTORY: An. Code 1957, art. 48A, § 491; 1995, ch. 36.