2006 Nebraska Revised Statutes - § 44-2121 — Terms, defined.

Section 44-2121
Terms, defined.

For purposes of the Insurance Holding Company System Act:

(1) An affiliate of, or person affiliated with, a specific person shall mean a person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the person specified;

(2) Control, including controlling, controlled by, and under common control with, shall mean 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 percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by subsection (11) of section 44-2132 that control does not exist in fact. The director 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;

(3) Director shall mean the Director of Insurance;

(4) An insurance holding company system shall consist of two or more affiliated persons, one or more of which is an insurer;

(5) Insurer shall have the same meaning as set forth in section 44-103, except that insurer 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;

(6) Person shall mean an individual, a corporation, a partnership, a limited partnership, an association, a joint-stock company, a trust, an unincorporated organization, any similar entity, or any combination of such entities acting in concert but shall not include any joint-venture partnership exclusively engaged in owning, managing, leasing, or developing real or tangible personal property;

(7) Security holder of a specified person shall mean 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 such stock or obligations;

(8) Subsidiary of a specified person shall mean an affiliate controlled by such person directly or indirectly through one or more intermediaries; and

(9) Voting security shall include any security convertible into or evidencing a right to acquire a voting security.

Source:

Laws 1991, LB 236, § 2

Laws 2001, LB 360, § 13

Annotations:

The purpose of the Insurance Holding Company System Act is to protect policyholders by probing the competence of those seeking to control insurance companies. The Insurance Holding Company System Act applies equally, regardless of whether the would-be acquiring party is a Nebraska resident, and as such does not resemble the principal objects of dormant Commerce Clause scrutiny, which are statutes that discriminate against interstate commerce. The Insurance Holding Company System Act poses no threat of inconsistent regulations, because it regulates only the internal affairs of insurers registered in this state and thus survives scrutiny under the Commerce Clause. CenTra, Inc. v. Chandler Ins. Co., 248 Neb. 844, 540 N.W.2d 318 (1995).

~Reissue Revised Statutes of Nebraska