236 
ated national insurers to file a consolidated registration 
statement. 
(e) EXEMPTIONS.—The provisions of this section 
shall not apply to any national insurer, information, or 
transaction if, and to the extent that, the Commissioner 
by regulation or order, exempts such insurer, information, 
or transaction from the provisions of this section. 
(f) DISCLAIMER.—Any person may file with the Com-
missioner a disclaimer of affiliation with any national in-
surer or a disclaimer may be filed by the national insurer 
or any member of an insurance holding company system. 
The disclaimer shall fully disclose all material relation-
ships and bases for affiliation between the person and the 
national insurer as well as the basis for disclaiming the 
affiliation. After a disclaimer has been filed, the national 
insurer shall be relieved of any duty to register or report 
under this section which may arise out of the national in-
surer’s relationship with the person unless and until the 
Commissioner disallows the disclaimer. The Commissioner 
shall disallow a disclaimer only after furnishing all parties 
in interest with notice and opportunity to be heard and 
after making specific findings of fact to support the dis-
allowance. 
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237 
SEC. 1403. STANDARDS AND MANAGEMENT OF A NATIONAL 
INSURER WITHIN AN INSURANCE HOLDING 
COMPANY SYSTEM. 
(a) TRANSACTIONS WITHIN AN INSURANCE HOLDING 
COMPANY SYSTEM.— 
(1) STANDARDS.—Transactions within an in-
surance holding company system to which a national 
insurer subject to registration under section 1402 is 
a party shall be subject to the following standards: 
(A) The terms shall be fair, reasonable, 
and at least as favorable to the national insurer 
as those that would be offered to, or would 
apply to, a nonaffiliate. 
(B) Charges or fees for services performed 
shall be reasonable and at least as favorable to 
the national insurer as those that would be of-
fered to, or would apply to, a nonaffiliate. 
(C) Expenses incurred and payment re-
ceived shall be allocated to the national insurer 
in conformity with customary insurance ac-
counting practices consistently applied. 
(D) The books, accounts, and records of 
each party to all such transactions shall be so 
maintained as to clearly and accurately disclose 
the nature and details of the transactions in-
cluding such accounting information as is nec-
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238 
essary to support the reasonableness of the 
charges or fees to the respective parties. 
(E) The national insurer’s surplus fol-
lowing any dividends or distributions to share-
holders shall be reasonable in relation to the 
outstanding liabilities of the national insurer 
and adequate to meet its financial needs. 
(2) APPROVAL OF CERTAIN TRANSACTIONS.— 
The Commissioner shall, by regulation, specify cer-
tain transactions involving a national insurer and 
any person in its insurance holding company system 
that are not permissible for a national insurer unless 
the national insurer has notified the Commissioner 
in writing of its intention to enter into the trans-
action and the Commissioner either has approved or 
not disapproved the transaction within a specified 
time period. 
(3) 
COMPLIANCE
WITH
STANDARDS.—The 
Commissioner, in reviewing any transaction for 
which notice is required pursuant to paragraph (2), 
shall consider whether the transaction complies with 
the standards set forth in paragraph (1) and wheth-
er the transaction may adversely affect the interests 
of policyholders. 
(b) EXTRAORDINARY DIVIDENDS.— 
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