State Codes and Statutes

Statutes > Connecticut > Title38a > Chap698 > Sec38a-129

      Sec. 38a-129. (Formerly Sec. 38-39a). Purpose. Definition. (a) It shall be the purpose of sections 38a-129 to 38a-140, inclusive, to safeguard the financial security of Connecticut domestic insurance companies by empowering the Insurance Commissioner to supervise the activities of insurance companies doing business within this state which are affiliated with an insurance holding company system, to review the acquisition of control over the management of domestic insurance companies, however effectuated, and to provide standards for such supervision and review.

      (b) As used in sections 38a-129 to 38a-140, inclusive, the following terms shall have the respective meanings hereinafter set forth, unless the context shall otherwise require:

      (1) "Affiliate" and "affiliated" have the meaning assigned to them by section 38a-1;

      (2) "Commissioner" means the Insurance Commissioner and any assistant to the Insurance Commissioner designated and authorized by him while acting under such designation;

      (3) "Control", "controlled by" and "under common control with" have the meaning assigned to them by section 38a-1. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten per cent or more of the voting securities of any other person. This presumption may be rebutted by a showing that control does not exist in fact. The commissioner may, after furnishing all persons in interest notice and opportunity to be heard, determine that control exists in fact, notwithstanding the absence of a presumption to that effect;

      (4) "Insurance holding company system" means two or more affiliated persons, one or more of which is an insurance company;

      (5) "Insurance company" shall have the same meaning as set forth in section 38a-1, except that it shall not include agencies, authorities or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state;

      (6) "Person" means a person as defined in section 38a-1, or any combination of persons so defined acting in concert;

      (7) A "securityholder" of a specified person means one who owns any security of such person, including common stock, preferred stock, debt obligations and any other security convertible into or evidencing the right to acquire any of the foregoing;

      (8) "Subsidiary" is defined in section 38a-1;

      (9) "Voting security" is defined to include any security convertible into or evidencing a right to acquire a voting security.

      (1969, P.A. 444, S. 1; P.A. 77-614, S. 163, 587, 610; P.A. 78-303, S. 85, 136; P.A. 80-482, S. 275, 345, 348; P.A. 85-16, S. 1, 6; P.A. 90-243, S. 13; P.A. 92-93, S. 42; 92-112, S. 13, 35; P.A. 04-174, S. 3.)

      History: P.A. 77-614 and 78-303 placed insurance commissioner within the department of business regulation and made insurance department a division within that department, effective January 1, 1979; P.A. 80-482 restored insurance commissioner and division to prior independent status and abolished the department of business regulation; P.A. 85-16 inserted new Subsec. (a), stating the purpose of Secs. 38-39a to 38-39l, inclusive, designated prior provisions as Subsec. (b) and replaced alphabetic Subdiv. indicators with numeric indicators; P.A. 90-243 added a definition for "affiliate" and "affiliated" and made technical corrections for clarity; Sec. 38-39a transferred to Sec. 38a-129 in 1991; P.A. 92-93 and 92-112 amended Subsec. (a) to empower the commissioner to supervise insurers which are affiliated with an insurance holding company system, added Subsec. (b)(7) and (9) defining "securityholder", and "voting security", renumbering former Subdiv. (7) as (8), and made technical corrections for statutory consistency; P.A. 04-174 amended Subsec. (b)(3) to delete "pursuant to subsection (j) of section 38a-135" re rebutting presumption that control exists.

      Annotation to former section 38-39a:

      Cited. 184 C. 352.