Conn. Agencies Regs. § 38a-138-13 Transactions Subject to Prior Notice - Notice Filing

• Library: Connecticut Administrative Code
• Edition: 2023
• Currency: Current through December 13, 2023
• Year: 2023
• Citation: Conn. Agencies Regs. § 38a-138-13

(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 38aForms - general requirements38a-138-1 to 38aSeverability38a-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;

(7) Specify that all books and records of the insurer are and remain the property of the insurer and are subject to control of 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;

(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; and (B) All books and...