§ 36-1651. Definitions.

As used in this act, the following terms shall have the respective meanings hereinafter set forth, unless the context shall otherwise require:

1.  An "affiliate" of, or person "affiliated" with, the specific person, is 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;

2.  The term "Commissioner" shall mean the Insurance Commissioner, the deputies, or the Insurance Department, as appropriate;

3.  The term "control" (including the terms "controlling", "controlled by" and "under common control with") means 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 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 percent (10%) or more of the voting securities of any other person.  This presumption may be rebutted by a showing that control does not exist in fact in the manner provided in subsection I of Section 1654 of this title.  The Commissioner 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;

4.  "Enterprise risk" shall mean any activity, circumstance, event or series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including, but not limited to, anything that would cause the insurer's risk-based capital to fall into company action level as set forth in Section 1524 of this title or would cause the insurer to be in hazardous financial condition as specified by the Insurance Commissioner by rule;

5.  An "insurance holding company system" consists of two or more affiliated persons, one or more of which is an insurer;

6.  "Insurer" shall have the same meaning as set forth in Section 103 of this title, except that it shall not include agencies, authorities or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state;

7.  A "person" is an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of the foregoing acting in concert, but shall not include any securities broker performing no more than the usual and customary broker's function;

8.  A "securityholder" of a specified person is one who owns any security of such person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing;

9.  A "subsidiary" of a specified person is an affiliate controlled by such person directly, or indirectly, through one or more intermediaries; and

10.  The term "voting security" shall include any security convertible into or evidencing a right to acquire a voting security.

Added by Laws 1970, c. 166, § 1, emerg. eff. April 9, 1970.  Amended by Laws 1992, c. 178, § 2, eff. Sept. 1, 1992; Laws 2013, c. 269, § 8, eff. Nov. 1, 2013.