Wis. Admin. Code Office of the Commissioner of Insurance Ins 41.05 - Acquisitions and dispositions of assets
(1) An acquisition
or disposition of assets is not required to be reported under s.
Ins 41.01 if the acquisition or disposition is not
material. For purposes of this chapter a material acquisition, or the aggregate
of any series of related acquisitions during any 30-day period, or disposition,
or the aggregate of any series of related dispositions during any 30-day
period, is one that is nonrecurring and not in the ordinary course of business
and involves more than 5% of the reporting insurer's total admitted assets as
reported in its most recent statutory statement filed with the insurance
department of the insurer's state of domicile.
(2) Asset acquisitions subject to this
chapter include every purchase, lease, exchange, merger, consolidation,
succession, or other acquisition other than the construction or development of
real property by or for the reporting insurer or the acquisition of materials
for this purpose.
(3) Asset
dispositions subject to this chapter include every sale, lease, exchange,
merger, consolidation, mortgage, hypothecation, assignment, whether for the
benefit of creditors or otherwise, abandonment, destruction, or other
disposition.
(4) The following
information is required to be disclosed in any report of a material acquisition
or disposition of assets under this chapter:
(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.
(g) Gain or loss recognized or realized as a
result of the transaction.
(h) Name
of the person from whom the assets were acquired or to whom they were
disposed.
(5) Insurers
are required to report material acquisitions and dispositions under this
chapter on a nonconsolidated basis unless the insurer is part of a consolidated
group of insurers which utilizes a pooling arrangement or 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 the insurer has less than $1,000,000 total direct
plus assumed written premiums during a calendar year that are not subject to a
pooling arrangement and the net income of the business not subject to the
pooling arrangement represents less than 5% of the insurer's capital and
surplus.
Notes
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