40 P.S. § 991.1401 Definitions

• Library: Pennsylvania Statutes
• Edition: 2023
• Currency: Current through P.A. Acts 2023-27
• Year: 2023
• Citation: 40 P.S. § 991.1401

As used in this article, and for the purposes of this article only, the following words and phrases shall have the meanings given to them in this section:

"Affiliate." A person that directly or indirectly through one or more intermediaries controls or is controlled by, or is under common control with, the person specified.

"Commissioner." The Insurance Commissioner of the Commonwealth.

"Company action level event." As defined in section 501-A or 501-B of the act of May 17, 1921 (P.L.789, No.285), known as "The Insurance Department Act of 1921."

"Control," "controlling," "controlled by" and "under common control with." The possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote or holds proxies representing ten per centum (10%) or more of the [voting securities of any other person] votes that all shareholders would be entitled to cast in the election of directors. This presumption may be rebutted by a showing that control does not exist in fact. The Insurance Department may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support such determination, that control exists in fact, notwithstanding the absence of a presumption to that effect or that another person has control.

"Department." The Insurance Department of the Commonwealth.

"Enterprise risk." An activity, circumstance, event or series of events involving one or more affiliates of an insurer that, if not remedied promptly, would likely have a material adverse effect on the financial condition or liquidity of an insurer or its insurance holding company system, including, but not limited to, anything that would:

(1) trigger a company action level event for the insurer or

(2) cause the insurer to be deemed to be in hazardous financial condition under:

(i) Article V of the act of May 17, 1921 (P.L.789, No.285), known as "The Insurance Department Act of 1921."

(ii) 31 Pa. Code Ch. 160 (relating to standards to define insurers deemed to be in hazardous financial condition).

"Group-wide supervisor." The regulatory official authorized to engage in conducting and coordinating group-wide supervision activities who is determined or acknowledged by the department under section 1406.2 to have sufficient significant contacts with an internationally active insurance group.