102 
future prospects of the national in-
surer. 
(b) INVESTIGATION OF PRINCIPALS.— 
(1) IN
GENERAL.—Upon receiving a notice 
under subsection (a)(1), the Commissioner shall— 
(A) conduct an investigation of the com-
petence, experience, integrity, and financial 
ability of each person named in a notice of a 
proposed acquisition as a person by whom or 
for whom such acquisition is to be made; and 
(B) make an independent determination of 
the accuracy and completeness of any informa-
tion described in subsection (f) with respect to 
such person. 
(2) REPORT.—The Commissioner shall prepare 
a written report of any investigation under para-
graph (1) that includes a summary of the results of 
such investigation and shall make such report pub-
licly available in accordance with regulations issued 
by the Commissioner for the publication of reports 
under this paragraph. 
(c) PUBLIC COMMENT.—Upon receiving notice of a 
proposed acquisition, the Commissioner shall, unless the 
Commissioner determines that an emergency exists, within 
a reasonable period of time— 
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(1) publish the name of the national insurer to 
be acquired and the name of each person identified 
in such notice as a person by whom or for whom 
such acquisition is to be made; and 
(2) solicit public comment on such proposed ac-
quisition, particularly from persons in the geo-
graphic area where the national insurer is located, 
before final consideration of such notice by the Com-
missioner. 
(d) GROUNDS
FOR DISAPPROVAL.—The Commis-
sioner may disapprove a proposed acquisition, if— 
(1) either the financial condition of any acquir-
ing person or the future prospects of the institution 
is such as might jeopardize the financial stability of 
the national insurer or prejudice the interests of the 
customers of such insurer; 
(2) the competence, experience, or integrity of 
any acquiring person or of any of the proposed man-
agement personnel indicates that it would not be in 
the interest of the customers of the national insurer, 
or in the interest of the public to permit such person 
to control the national insurer; or 
(3) any acquiring person neglects, fails, or re-
fuses to furnish the Commissioner with all the infor-
mation required by the Commissioner. 
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(e) NOTICE OF DISAPPROVAL, HEARING.— 
(1) NOTICE OF DISAPPROVAL.—Not later than 
3 days after a decision to disapprove a proposed ac-
quisition under this section, the Commissioner shall 
notify the acquiring person in writing of the dis-
approval. Such notice shall provide a statement of 
the basis for the disapproval. 
(2) HEARING.— 
(A) IN GENERAL.—Not later than 10 days 
after the receipt of a notice of disapproval 
under paragraph (1), a person may request a 
hearing before a United States district court 
with jurisdiction on the proposed acquisition. 
(B) STANDARD OF REVIEW.—A judge re-
viewing a notice of disapproval under paragraph 
(1) shall determine whether the decision of the 
Commissioner is reasonable. 
(3) JUDICIAL REVIEW.—A person whose pro-
posed acquisition is disapproved after a hearing 
under paragraph (2) may obtain review by the 
United States court of appeals for the circuit in 
which the main office of the national insurer is to 
be acquired is located, or the United States Court of 
Appeals for the District of Columbia Circuit, by fil-
ing a notice of appeal in such court within 10 days 
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from the date of such order, and simultaneously 
sending a copy of such notice by registered or cer-
tified mail to the Commissioner. The Commissioner 
shall promptly certify and file in such court the 
record upon which the disapproval was based. The 
findings of the Commissioner shall be set aside if 
found to be arbitrary or capricious or if found to 
violate procedures established by this section. 
(f) INFORMATION.—A notice described in this sub-
section is a notice that includes such relevant information 
in such form as the Commissioner may require by regula-
tion or by specific request in connection with a particular 
notice. 
SEC. 502. REPORTS BY AND EXAMINATIONS OF INSURANCE 
HOLDING COMPANIES. 
(a) REPORTS.—Each national insurance holding com-
pany and each subsidiary of such company, other than a 
national insurer, shall file with the Commissioner such re-
ports as may be required by the Commissioner. Such re-
ports shall be made under oath, and shall be in such form 
and for such periods as the Commissioner may prescribe. 
Each report shall contain such information concerning the 
operations of such national insurance holding company 
and its subsidiaries as the Commissioner may require. 
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106 
(b) EXAMINATIONS.—Each national insurance hold-
ing company and each subsidiary thereof shall be subject 
to such examinations as the Commissioner may prescribe. 
The cost of such examinations shall be assessed against 
and paid by such national insurance holding company. 
(c) APPLICABILITY TO NON-UNITED STATES INSUR-
ANCE HOLDING COMPANIES AND SUBSIDIARIES.—Each 
non-United States insurance holding company and each 
non-United States subsidiary thereof shall be subject to 
the report and examination authority of this section only 
to the extent authorized by an applicable international 
agreement. 
(d) REPORTS
AND EXAMINATIONS FILED WITH 
OTHER AGENCIES.—The Commissioner shall, to the full-
est extent deemed feasible, use for the purposes of this 
section reports filed with and examinations made by other 
Federal agencies. 
(e) POWERS.—The powers authorized for the Com-
missioner in section 121 shall apply to reports by and ex-
aminations of insurance holding companies and their sub-
sidiaries. 
SEC. 503. ACTIVITIES OF INSURANCE HOLDING COMPANIES 
AND SUBSIDIARIES. 
(a) IN GENERAL.—No national insurance holding 
company and no subsidiary of a national insurance holding 
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company shall engage in any activity that the Commis-
sioner determines poses a significant risk to the solvency 
of a national insurer, jeopardizes the interests of the pol-
icyholders of such insurer, or is incompatible with the pub-
lic interest. 
(b) DETERMINATION AND NOTICE FOR CORRECTIVE 
ACTION.—If the Commissioner determines that a national 
insurance holding company or subsidiary of a national in-
surance holding company is engaged, or has engaged, or 
the Commissioner has reasonable cause to believe is about 
to engage in an activity in violation of the terms of sub-
section (a), the Commissioner shall provide a written no-
tice to such company or subsidiary, which shall specify the 
action or actions the company or subsidiary must take to 
correct the violation and a time period for taking such cor-
rective action or actions. The issuance of a notice under 
this section does not prevent the Commissioner from tak-
ing any other enforcement action against the company or 
subsidiary. 
(c) HEARING.— 
(1) IN GENERAL.—Not later than 10 days after 
the date of receipt of a notice issued pursuant to 
subsection (b), a national insurance holding com-
pany or subsidiary of such company may request a 
hearing before a United States district court with 
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