§431:11-104.2 Scope. (a)
Except as otherwise provided in subsection (b), this section and sections
431:11-104.3 through 431:11-104.6 apply to any acquisition in which there is a
change in control of an insurer authorized to do business in this State.
(b) [Subsection effective January 1, 2016.
For subsection effective until December 31, 2015, see below.] This section
and sections 431:11-104.3 through 431:11-104.6 shall not apply to the
following:
(1) A purchase of securities solely for investment purposes,
so long as those securities are not used by voting or otherwise to cause or
attempt to cause the substantial lessening of competition in any insurance
market in this State. If a purchase of securities results in a presumption of
control as defined in section 431:11-102, it is not solely for investment
purposes unless the commissioner of the insurer's state of domicile accepts a
disclaimer of control or affirmatively finds that control does not exist and
the disclaimer action or affirmative finding is communicated by the domiciliary
commissioner to the commissioner;
(2) The acquisition of a person by another person
when both persons are neither directly nor through affiliates primarily engaged
in the business of insurance, if preacquisition notification is filed with the
commissioner in accordance with section 431:11-104.3 thirty days prior to the
proposed effective date of the acquisition. However, the preacquisition
notification is not required for exclusion from this section and sections 431:11-104.3
through 431:11-104.6 if the acquisition would otherwise be excluded by any
other paragraph of this subsection;
(3) The acquisition of affiliated persons;
(4) An acquisition if, as an immediate result of the
acquisition:
(A) In no market would the combined market
share of the involved insurers exceed five per cent of the total market;
(B) There would be no increase in any market
share; or
(C) In no market would:
(i) The combined market share of the involved
insurers exceed twelve per cent of the total market; and
(ii) The market share increase by more than two
per cent of the total market.
For the purpose of this paragraph,
"market" means direct written insurance premiums in this State for a
line of business as contained in the annual statement required to be filed by
insurers licensed to do business in this State;
(5) An acquisition for which a preacquisition
notification would be required pursuant to this section due solely to the
resulting effect on the ocean marine insurance line of business; and
(6) An acquisition of an insurer whose domiciliary
commissioner affirmatively finds that the insurer is in failing condition;
there is a lack of feasible alternative to improving such condition; the public
benefits of improving the insurer's condition through the acquisition exceed
the public benefits that would arise from not lessening competition; and those
findings are communicated by the domiciliary commissioner to the commissioner
of this State. [L 1992, c 176, pt of §3; am L 2014, c 234, §9]
(b) [Subsection effective until December
31, 2015. For subsection effective January 1, 2016, see above.] This
section and sections 431:11-104.3 through 431:11-104.6 shall not apply to the
following:
(1) An acquisition subject to approval by the
commissioner pursuant to section 431:11-104;
(2) A purchase of securities solely for investment
purposes, so long as those securities are not used by voting or otherwise to
cause or attempt to cause the substantial lessening of competition in any
insurance market in this State. If a purchase of securities results in a
presumption of control as defined in section 431:11-102, it is not solely for
investment purposes unless the commissioner of the insurer's state of domicile
accepts a disclaimer of control or affirmatively finds that control does not
exist and the disclaimer action or affirmative finding is communicated by the
domiciliary commissioner to the commissioner;
(3) The acquisition of a person by another person
when both persons are neither directly nor through affiliates primarily engaged
in the business of insurance, if preacquisition notification is filed with the
commissioner in accordance with section 431:11-104.3 thirty days prior to the
proposed effective date of the acquisition. However, the preacquisition
notification is not required for exclusion from this section and sections
431:11-104.3 through 431:11-104.6 if the acquisition would otherwise be
excluded by any other paragraph of this subsection;
(4) The acquisition of affiliated persons;
(5) An acquisition if, as an immediate result of the
acquisition:
(A) In no market would the combined market
share of the involved insurers exceed five per cent of the total market;
(B) There would be no increase in any market
share; or
(C) In no market would:
(i) The combined market share of the involved
insurers exceed twelve per cent of the total market; and
(ii) The market share increase by more than two
per cent of the total market.
For the purpose of this paragraph, a market
means direct written insurance premiums in this State for a line of business as
contained in the annual statement required to be filed by insurers licensed to
do business in this State;
(6) An acquisition for which a preacquisition
notification would be required pursuant to this section due solely to the
resulting effect on the ocean marine insurance line of business; and
(7) An acquisition of an insurer whose domiciliary
commissioner affirmatively finds that the insurer is in failing condition;
there is a lack of feasible alternative to improving such condition; the public
benefits of improving the insurer's condition through the acquisition exceed
the public benefits that would arise from not lessening competition; and those
findings are communicated by the domiciliary commissioner to the commissioner.
[L 1992, c 176, pt of §3]
