(b) The following transactions between a parent corporation and any subsidiary may not be entered into unless the parent corporation has notified the superintendent in writing of its intention to enter into any such transaction at least thirty days prior thereto, or with regard to reinsurance treaties or agreements at least forty-five days prior thereto, or such shorter period as the superintendent may permit, and the superintendent has not disapproved it within such period:
(1) sales, purchases, exchanges, loans, extensions of credit, or investments with a subsidy, provided the transactions are equal to or exceed:
(A) three percent of the parent corporation's admitted assets at last year-end, with regard to a domestic life insurance company; or
(B) the lesser of three percent of the parent corporation's admitted assets or twenty-five percent of capital and surplus at last year-end, with regard to a domestic corporation subject to article forty-three of this chapter; or
(2) loans or extensions of credit to any person who is not a subsidiary, where the parent corporation makes loans or extensions of credit with the agreement or understanding that the proceeds of such transactions, in whole or in substantial part, are to be used to make loans or extensions of credit to, purchase assets of, or make investments in, any subsidiary of the parent corporation making the loans or extensions of credit, provided the transactions are equal to or exceed:
(A) three percent of the parent corporation's admitted assets at last year-end, with regard to a domestic life insurance company; or
(B) the lesser of three percent of the parent corporation's admitted assets or twenty-five percent of capital and surplus at last year-end, with regard to a domestic corporation subject to article forty-three of this chapter; or
(3) reinsurance treaties or agreements with a subsidiary that the parent corporation has not otherwise submitted to the superintendent. This shall include agreements that may require, as consideration, the transfer of assets from a parent corporation to a non-subsidiary, if an agreement or understanding exists between the parent corporation and non-subsidiary that any portion of the assets will be transferred to one or more subsidiaries of the parent corporation; and
(4) management agreements, service contracts, tax allocation agreements, guarantees, and all cost-sharing arrangements.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.