Connecticut Administrative Code › Title 38a - Insurance Department › 138 - Insurance Holding Company Act › Section 38a-138-13 - Transactions subject to prior notice - notice filing

Current through July 10, 2024
(a) An
			 insurer required to give notice of a proposed transaction pursuant to section
			 38a-136 of the Connecticut General Statutes shall furnish the required information
			 on Form D (Appendix D of sections 38a-138-1 to 38a-138-16, inclusive, of the
			 Regulations of Connecticut State Agencies).
(b) Agreements for cost sharing services and
			 management services shall at a minimum and as applicable:
(1) Identify the person providing the service and
			 the nature of such services;
(2) Set
			 forth the methods to allocate costs;
(3)
			 Require timely settlement, not less frequently than on a quarterly basis, and
			 compliance with the requirements in the NAIC Accounting Practices and Procedures
			 Manual;
(4) Prohibit advancement of
			 funds by the insurer to the affiliate except to pay for services defined in the
			 agreement;
(5) State that the insurer
			 will maintain oversight for functions provided to the insurer by the affiliate and
			 that the insurer will monitor services annually for quality assurance;
(6) Define books and records of the insurer to
			 include all books and records developed or maintained under or related to the
			 agreement that are otherwise the property of the insurer, in whatever form
			 maintained, including, but not limited to, claims and claim files, policyholder
			 lists, application files, litigation files, premium records, rate books,
			 underwriting manuals, personnel records, financial records, or similar records
			 within the possession, custody, or control of the affiliate;
(7) Specify that all books and records of the
			 insurer are and remain the property of the insurer and:
(A) Are subject to control of the
			 insurer;
(B) Are identifiable;
(C) Are segregated from all other persons' books
			 and records or are readily capable of segregation at no additional cost to the
			 insurer;
(8) State that all
			 funds and invested assets of the insurer are the exclusive property of the insurer,
			 held for the benefit of the insurer and are subject to the control of the
			 insurer;
(9) Include standards for
			 termination of the agreement with and without cause;
(10) Include provisions for indemnification of the
			 insurer in the event of gross negligence or willful misconduct on the part of the
			 affiliate providing the services and for any actions by the affiliate that violate
			 provisions of the agreement required in subdivision (11) to (15), inclusive, of this
			 subsection ;
(11) Specify that, if the
			 insurer is placed in receivership or seized by the Commissioner under Chapter 704c
			 of the Connecticut General Statutes:
(A) All of the
			 rights of the insurer under the agreement extend to the receiver or Commissioner;
(B) All books and records of the
			 insurer shall be identifiable and segregated from all other persons' books and
			 records or readily capable of segregation at no additional cost to the receiver or
			 the Commissioner;
(C) A complete set of
			 books and records shall be made immediately available to the receiver or
			 Commissioner, be made available in a usable form and be turned over to the receiver
			 or Commissioner immediately upon the receiver's or Commissioner's request, and the
			 cost to transfer data to the receiver or Commissioner shall be fair and reasonable;
			 and
(D) The affiliate shall make
			 available all employees essential to the operations of the insurer and the services
			 associated therewith for the immediate continued performance of the essential
			 services ordered or directed by the receiver or Commissioner;
(12) Specify that the affiliate has no automatic
			 right to terminate the agreement if the insurer is placed in supervision, seizure,
			 conservatorship, or receivership pursuant to Chapter 704c of the Connecticut General
			 Statutes;
(13) Specify that the
			 affiliate shall continue to maintain any systems, programs or other infrastructure
			 notwithstanding supervision , seizure , conservatorship, or receivership by the
			 Commissioner under Chapter 704c of the Connecticut General Statutes, and will make
			 them available to the receiver or Commissioner as ordered or directed by the
			 receiver or Commissioner , for as long as the affiliate continues to receive timely
			 payment for post-receivership services rendered and unless released by the receiver,
			 Commissioner or supervising court;
(14)
			 Specify that the affiliate shall provide the essential services for a minimum period
			 of time as specified in the agreement after termination of the agreement, if the
			 insurer is placed into supervision, seizure, conservatorship, or receivership
			 pursuant to Chapter 704c of the Connecticut General Statutes, as ordered or directed
			 by the receiver or Commissioner. Performance of the essential services will continue
			 to be provided without regard to pre-receivership unpaid fees, so long as the
			 affiliate continues to receive timely payment for post-receivership services
			 rendered, and unless released by the receiver, Commissioner, or supervising court;
			 and
(15) Specify that, in furtherance of
			 the cooperation between the receiver and the affected guaranty association or
			 associations and subject to the receiver's authority over the insurer, if the
			 insurer is placed into supervision, seizure, conservatorship or receivership
			 pursuant to pursuant to Chapter 704c of the Connecticut General Statutes, and
			 portions of the insurer's policies or contracts are eligible for coverage by one or
			 more guaranty associations, the affiliate's commitments under subdivision (11) to
			 (15), inclusive, of this subsection shall extend to such guaranty
			 association(s).