Pennsylvania Code › Title 31 - INSURANCE › Part I - General Provisions › Subpart B - Securities and Stock Transactions › Chapter 25 - RULES AND PROCEDURAL REQUIREMENTS FOR INSURANCE HOLDING COMPANY SYSTEMS › Appendix A › Form D - PRIOR NOTICE OF A TRANSACTION

Current through Register Vol. 54, No. 28, July 13, 2024
Filed with the Insurance Department of the Commonwealth
						of Pennsylvania by (
Name of Registrant
) on behalf of
						the following insurance companies:
Name
Address
NAIC Code Number State of Domicile
Date:__________,______
Name, title, address and telephone number of individual
						to whom notices and correspondence concerning this statement should be
						addressed:
Item 1. Identity of Parties to
						Transaction
Furnish the following information for each of the parties
						to the transaction:
A. Name.
B. Home office address.
C. Principal executive office address.
D. The organizational structure, i.e. corporation,
						partnership, individual, trust, etc.
E. A description of the nature of the parties' business
						operations.
F. Relationship, if any, of other parties to the
						transaction to the insurer filing the notice, including any ownership or
						debtor/creditor interest by any other parties to the transaction in the insurer
						seeking approval, or by the insurer filing the notice in the affiliated
						parties.
G. If the transaction is with a non-affiliate, the
						name(s) of the affiliate(s) which will receive, in whole or in substantial
						part, the proceeds of the transaction.
Item 2. Description of the
						Transaction
Furnish the following information for each transaction
						for which notice is being given:
A. A statement as to whether notice is being given under
						Section 1405(a)(2)(i), (ii), (iii), or (iv) or (v) of the act.
B. A description of the nature and purpose of the
						transaction, including the anticipated immediate and long-term effect of the
						transaction on the financial condition of the insurer.
C. A statement of how the transaction meets the fair and
						reasonable standard of section 1405(a)(1)(i) of the Act (40 P. S. §
												991.1405(a)(1)(i)).
D. The proposed effective date of the transaction.
E. A copy of the management agreement, service contracts,
						tax allocation agreement, guarantee or cost-sharing arrangement.
Item 3. Sales, Purchases, Exchanges, Loans,
						Extensions of Credit, Guarantees, Investments, Pledges of Assets or
						Contributions to Surplus equal to or exceeding 3% of the insurer's admitted
						assets or 25% of surplus as regards policyholders reported pursuant to
						40
						P. S. §
													991.1405(a)(2)(i)
.
						Furnish a brief description of the amount and source of funds, securities,
						property or other consideration for the sale, purchase, exchange, loan,
						extension of credit, guarantee, investment, or pledge of assets, including
						assets to be received by the domestic insurer as a contribution to its surplus;
						whether any provision exists for purchase by the insurer filing notice, by any
						party to the transaction, or by any affiliate of the insurer filing notice; a
						description of the terms of any securities being received, if any; and a
						description of any other agreements relating to the transaction such as
						contracts or agreements for services, consulting agreements and the like. If
						the transaction involves other than cash, furnish a description of the
						consideration, its cost and its fair market value, together with an explanation
						and supporting documentation of the basis for valuation.
If the transaction involves a loan, extension of credit
						or a guarantee, furnish a description of the maximum amount which the insurer
						will be obligated to make available under the loan, extension of credit or
						guarantee, the date on which the credit or guarantee will terminate, and any
						provisions for the accrual of or deferral of interest.
If the transaction involves an investment, guarantee or
						other arrangement, state the time period during which the investment, guarantee
						or other arrangement will remain in effect, together with any provisions for
						extensions or renewals of the investments, guarantees or arrangements. Furnish
						a brief statement as to the effect of the transaction upon the insurer's
						surplus and the insurer's accounting treatment.
No notice need be given under this item if the maximum
						amount which can at any time be outstanding or for which the insurer can be
						legally obligated under the loan, extension of credit or guarantee is less than
						3% of the insurer's admitted assets or 25% of its surplus as of the 31st day of
						December next preceding. Please see item 6 for the reporting of matters below
						these thresholds.
Item 4. Loans or Extensions of Credit to a
						Non-Affiliate
If the transaction involves a loan or extension of credit
						to any person who is not an affiliate, furnish a brief description of the
						agreement or understanding whereby the proceeds of the proposed transaction, in
						whole or in substantial part, are to be used to make loans or extensions of
						credit to, to purchase the assets of, or to make investments in, any affiliate
						of the insurer making the loans or extensions of credit, and specify in what
						manner the proceeds are to be used to loan to, extend credit to, purchase
						assets of or make investments in any affiliate. Describe the amount and source
						of funds, securities, property or other consideration for the loan or extension
						of credit and, if the transaction is one involving consideration other than
						cash, a description of its cost and its fair market value together with an
						explanation of and supporting documentation for the basis of valuation. Furnish
						a brief statement as to the effect of the transaction upon the insurer's
						surplus.
No notice need be given if the loan or extension of
						credit is one which equals less than 3% of the insurer's admitted assets or 25%
						of its surplus as of the 31st day of December next preceding.
Item 5. Reinsurance
If the transaction is a reinsurance agreement or
						modification thereto, as described by Section 1405(a)(2)(iii) of the act or a
						reinsurance pooling agreement or modification thereto as described by Section
						1405(a)(2)(iii)(C) of the act, furnish a description of the known and/or
						estimated amount of liability to be ceded and/or assumed in each calendar year,
						the period of time during which the agreement will be in effect, and a
						statement whether an agreement or understanding exists between the insurer and
						non-affiliate to the effect that any portion of the assets constituting the
						consideration for the agreement will be transferred to one or more of the
						insurer's affiliates. Furnish a brief description of the consideration involved
						in the transaction, and a brief statement as to the effect of the transaction
						upon the insurer's surplus.
Notice shall be given for all reinsurance pooling
						agreements including modifications thereto.
No notice need be given for reinsurance agreements or
						modifications thereto if the reinsurance premium or the projected reinsurance
						premium or change in the insurer's liabilities in any of the next three years,
						in connection with the reinsurance agreement or modification thereto is less
						than 5% of the insurer's surplus as regards policy-holders, as of the 31st day
						of December next preceding.
Item 6. Management Agreements, Service Contracts,
						Tax Allocation Agreements, Guarantees and Cost-Sharing Arrangements reported
						pursuant to
						40
						P. S. §
													991.1405(a)(2)(v).
A. For management agreements and service contracts,
						furnish:
(1) A brief description of the managerial
						responsibilities, or services to be performed.
(2) A brief description of the agreement, including a
						statement of its duration, together with brief descriptions of the basis for
						compensation and the terms under which payment or compensation is to be
						made.
B. For cost-sharing arrangements, furnish:
(1) A brief description of the purpose of the
						agreement.
(2) A description of the period of time during which the
						agreement is to be in effect.
(3) A brief description of each party's expenses or costs
						covered by the agreement.
(4) A brief description of the accounting basis to be
						used in calculating each party's costs under the agreement.
(5) A brief statement as to the effect of the transaction
						upon the insurer's policyholder surplus.
(6) A statement regarding the cost allocation methods
						that specifies whether proposed charges are based on "cost or market." If
						market based, rationale for using market instead of cost, including
						justification for the company's determination that amounts are fair and
						reasonable.
(7) A statement regarding compliance with the NAIC
						Accounting Practices and Procedure Manual regarding expense allocation.
C. For tax allocation agreements and guarantees,
						furnish:
(1) A brief description of the purpose of the
						agreement.
(2) A description of the period of time during which the
						agreement is to be in effect.
(3) A brief statement as to the effect of the transaction
						upon the insurer's policyholder surplus.
(4) A statement regarding compliance with the NAIC
						Accounting Practices and Procedure Manual regarding expense allocation.
Item 7. Signature and
						Certification
Signature and certification required as follows:
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