Pennsylvania Act 1968-288 — REQUIRING REPORTS FROM INSURANCE COMPANIES

Act text

REQUIRING REPORTS FROM INSURANCE COMPANIES
                 Act of Jul. 31, 1968, P.L. 941, No. 288              Cl. 40
                                  AN ACT

     Providing for reporting to the Insurance Commissioner by
        domestic insurance companies, associations, or exchanges, of
        certain conveyances of interests in the assets of such
        companies, associations, or exchanges.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  As used in this act, the term--
        (1)  "Assets" includes all the property and rights of every
     kind of a domestic insurance company, association or exchange.
        (2)  "Total assets" means the dollar amount of the company's
     total assets as reported in its most recent convention
     statement.
        (3)  "Disposal" includes any sale, transfer, exchange,
     assignment, alienation or other conveyance of an interest in
     assets, but does not include a ceding of policies pursuant to a
     reinsurance contract.
        Section 2.  Any domestic insurance company, association, or
     exchange that, within any period of thirty days, by one or more
     transactions, disposes of any of its assets which, in the
     aggregate, amount to more than ten percent of its total assets,
     shall send written notification thereof to the Insurance
     Commissioner. Such notification shall be given within ten
     business days prior to the making of such disposal, and shall
     specify the nature and amount thereof, and identify all of the
     parties thereto.
        Section 3.  Any domestic insurance company, association or
     exchange except a domestic life insurance company, which, during
     any period of twelve consecutive months, by any contract or
     contracts of reinsurance, cedes an amount of its insurance on
     which the total gross reinsurance premiums are more than fifty
     percent of the unearned premiums on the net amount of its
     insurance in force at the beginning of such period, shall give
     written notification thereof to the Insurance Commissioner. Any
     domestic life insurance company which reinsures its whole risk
     on any individual life or joint lives or reinsures policies
     which, during any period of twelve consecutive months, in the
     aggregate, amount to more than fifty percent of its insurance in
     force shall give written notification thereof to the Insurance
     Commissioner. The notification required hereunder shall be given
     at least ten business days before the date such reinsurance
     takes effect, and shall specify the nature and amount thereof,
     and identify the parties thereto. The requirements of this
     section shall not apply to reinsurance made in the ordinary
     course of business covering reinsurance of specified individual
     risks under agreements relating to current business and shall be
     in addition to the requirements contained in section 319 of the
     Act of May 17, 1921 (P.L.682), known as "The Insurance Company
     Law of 1921."
        Section 4.  The Insurance Commissioner shall, by regulation,
     prescribe the rules necessary for the administration of this
     act.