Mich. Admin. Code R. 500.52 - acquisitions and disposition of assets explained
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.
Notes
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