Oklahoma § 36-310A.2 - Material acquisitions or dispositions defined Information to be disclosed in report

§ 36-310A.2. Material acquisitions or dispositions defined Information to be disclosed in report

A. No acquisitions or dispositions of assets need be reported

pursuant to Section 1 of this act if the acquisitions or

dispositions are not material. For purposes of this act, a material

acquisition, or the aggregate of any series of related acquisitions

during any thirty-day period, or disposition, or the aggregate of

any series of related dispositions during any thirty-day period, is

one that is nonrecurring and not in the ordinary course of business

and involves more than five percent (5%) of the reporting insurer's

total admitted assets as reported in its most recent annual

statement filed with the Insurance Commissioner pursuant to Section

311 of Title 36 of the Oklahoma Statutes.

B. 1. Asset acquisitions subject to Section 1 of this act

include every purchase, lease, exchange, merger, consolidation,

succession or any other acquisition.

2. Asset dispositions subject to this act include every sale,

lease, exchange, merger, consolidation, mortgage, hypothecation,

assignment whether for the benefit of creditors or otherwise,

abandonment, destruction or other disposition.

C. 1. The following information is required to be disclosed in

any report of a material acquisition or disposition of assets:

a.

date of the transaction,

b.

manner of acquisition or disposition,

c.

description of the assets involved,

d.

nature and amount of the consideration given or

received,

e.

purpose of, or reason for, the transaction,

f.

manner by which the amount of consideration was

determined, and

g.

gain or loss recognized or realized as a result of the

transaction.

Oklahoma Statutes - Title 36. Insurance

2. Insurers are required to report material acquisitions and

dispositions on a nonconsolidated basis unless the insurer is part

of a consolidated group of insurers which utilizes a pooling

arrangement or one hundred percent (100%) reinsurance agreement that

affects the solvency and integrity of the insurer's reserves and the

insurer ceded substantially all of its direct and assumed business

to the pool. An insurer is deemed to have ceded substantially all

of its direct and assumed business to a pool if:

a.

the insurer has less than One Million Dollars

($1,000,000.00) total direct plus assumed written

premiums during a calendar year that are not subject

to a pooling arrangement, and

b.

the net income of the business not subject to the

pooling arrangement represents less than five percent

(5%) of the insurer's capital and surplus.

Added by Laws 1997, c. 273, § 2, eff. July 1, 1997.