Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-508 - Control of or merger with domestic insurer - Content of statement

(a)
The statement to be filed with the Insurance Commissioner pursuant to this section shall be made under oath or affirmation and shall contain the following information:
(1)
The name and address of each person by whom or on whose behalf the merger or other acquisition of control referred to in §
23-63-506
is to be effected, hereinafter called "acquiring party", and:
(A)
If the person is an individual, his or her principal occupation and all offices and positions held during the past five (5) years and any conviction of crimes other than minor traffic violations during the past ten (10) years; and
(B)
If the person is not an individual, a report of the nature of its business operations during the past five (5) years or for such lesser period as the person and any predecessors thereof shall have been in existence, an informative description of the business intended to be done by the person and the person's subsidiaries, and a list of all individuals who are or who have been selected to become directors or executive officers of the person, or who perform or will perform functions appropriate to the positions. The list shall include for each individual the information required by subdivision (a)(1)(A) of this section;
(2)
The source, nature, and amount of the consideration used or to be used in effecting the merger or other acquisition of control, a description of any transaction wherein funds were or are to be obtained for any such purpose, and the identity of persons furnishing the consideration. However, where a source of the consideration is a loan made in the lender's ordinary course of business, the identity of the lender shall remain confidential if the person filing the statement so requests;
(3)
Fully audited financial information as to the earnings and financial condition of each acquiring party for the preceding five (5) fiscal years of each acquiring party, or for such lesser period as the acquiring party and any predecessors thereof shall have been in existence, and similar unaudited information as of a date not earlier than ninety (90) days prior to the filing of the statement;
(4)
Any plans or proposals which each acquiring party may have to liquidate the insurer, to sell its assets or merge or consolidate it with any person, or to make any other material change in its business or corporate structure or management;
(5)
The number of shares of any security referred to in §
23-63-506
which each acquiring party proposes to acquire, the terms of the offer, request, invitation, agreement, or acquisition referred to in §
23-63-506
, and a statement as to the method by which the fairness of the proposal was arrived at;
(6)
The amount of each class of any security referred to in §
23-63-506
which is beneficially owned or concerning which there is a right to acquire beneficial ownership by each acquiring party;
(7)
A full description of any contracts, arrangements, or understandings with respect to any security referred to in §
23-63-506
in which any acquiring party is involved, including, but not limited to, transfer of any of the securities, joint ventures, loans or option arrangements, puts or calls, guarantees of loans, guarantees against loss or guarantees of profits, division of losses or profits, or the giving or withholding of proxies. The description shall identify the persons with whom the contracts, arrangements, or understandings have been entered into;
(8)
A description of the purchase of any security referred to in §
23-63-506
during the twelve (12) calendar months preceding the filing of the statement by any acquiring party, including the dates to purchase, names of the purchasers, and consideration paid or agreed to be paid therefor;
(9)
A description of any recommendations to purchase any security referred to in §
23-63-506
made during the twelve (12) calendar months preceding the filing of the statement by any acquiring party or by anyone based upon interviews or at the suggestion of the acquiring party;
(10)
Copies of all tender offers for, requests or invitations for tenders of, exchange offers for, and agreements to acquire or exchange any securities referred to in §
23-63-506
and, if distributed, of additional soliciting material relating thereto;
(11)
The terms of any agreement, contract, or understanding made with any broker-dealer as to solicitation of securities referred to in §
23-63-506
for tender, and the amount of any fees, commissions, or other compensation to be paid to broker-dealers with regard thereto;
(12)
An agreement by the person required to file the statement referred to in §
23-63-506
that it will provide the annual report specified in §
23-63-514(m)
for as long as control exists;
(13)
An acknowledgement by the person required to file the statement referred to in §
23-63-506
that the person and all subsidiaries within its control in the insurance holding company system will provide information to the commissioner upon request as necessary to evaluate enterprise risk to the insurer; and
(14)
Such additional information as the commissioner may, by rule or regulation, prescribe as necessary or appropriate for the protection of policyholders and security holders of the insurer or in the public interest.
(b)
(1)
If the person required to file the statement referred to in §
23-63-506
is a partnership, limited partnership, syndicate, or other group, the commissioner may require that the information called for by subdivisions (a)(1)-(14) of this section shall be given with respect to each partner of the partnership or limited partnership, each member of the syndicate or group, and each person who controls the partner or member.
(2)
If any partner, member, or person is a corporation or the person required to file the statement referred to in §
23-63-506
is a corporation, the commissioner may require that the information called for by subdivisions (a)(1)-(14) of this section shall be given with respect to the corporation, each officer and director of the corporation, and each person who is directly or indirectly the beneficial owner of more than ten percent (10%) of the outstanding voting securities of the corporation.
(c)
If any material change occurs in the facts set forth in the statement filed with the commissioner and sent to the insurer pursuant to §§
23-63-506
-
23-63-513
, an amendment setting forth the change, together with copies of all documents and other material relevant to the change, shall be filed with the commissioner and sent to the insurer within two (2) business days after the person learns of the change. The insurer shall send the amendment to its stockholders.
Amended by Act 2017, No. 386,§ 2, eff. 8/1/2017.
Acts 1971, No. 288, § 5; A.S.A. 1947, § 66-5005; Acts 1991, No. 723, § 22.