Mich. Admin. Code R. 500.52 - acquisitions and disposition of assets explained
Current through Vol. 22-05, April 1, 2022
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Rule 2. (1) As used in R 500.51, a material acqusition or disposition of assets is one which is nonrecurring and not in the ordinary course of business and which involves more than 5% of the reporting insurer's total admitted assets, as reported in its most recent statutory statement filed with the commissioner. A material acquisition or disposition includes the aggregate of any series of related acquisitions or dispositions during any 30-day period.
(2) Asset acquisitions subject to this rule include every purchase, lease, exchange, merger, consolidation, succession, or other acquisition other than the construction or development or real property by or for the reporting insurer or the acquisition of materials for such purpose.
(3) Asset dispositions subject to this rule include every assignment, whether for the benefit of creditors or otherwise, sale, lease, exchange, merger, consolidation, mortgage, hypothecation, abandonment, destruction, or other disposition.
(4) All of the following information is required to be disclosed in any report of a material acquisition or disposition of assets:
(a) The date of the transaction.
(b) The manner of acquisition or disposition.
(c) A description of the asset involved.
(d) The nature and amount of the consideration given or received.
(e) The purpose of, or reason for, the transaction.
(f) The manner by which the amount of consideration was determined.
(g) The gain or loss recognized or realized as a result of the transaction.
(h) The name or names of the person or persons from whom the assets were acquired or to whom they were disposed.
History: 1996 AACS.