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  • PART I ADMINISTRATION OF THE GOVERNMENT
  • TITLE XXII CORPORATIONS
  • CHAPTER 175 INSURANCE
  • Section 206 Definitions applicable to Secs. 206 to 206D

Section 206. As used in sections two hundred and six, two hundred and six A, two hundred and six B, two hundred and six C, and two hundred and six D, the following words shall, unless the context clearly requires otherwise, have the following meaning:—

“Affiliate”, an affiliate of, or person affiliated with, a 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.

“Commissioner”, the insurance commissioner, his deputies, or the division of insurance, as appropriate.

“Control”, including 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 non-management 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 (k) of section 206C that control does not exist in fact. 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.

“Insurance holding company system”, an insurance holding company system consists of two or more affiliated persons, one or more of which is an insurer.

“Insurer”, shall have the same meaning as set forth in section one and, in no event, shall include: (1) 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; (2) fraternal benefit societies under chapter one hundred and seventy-six or (3) nonprofit medical and hospital service associations under chapters one hundred and seventy-six A and one hundred and seventy-six B.

“Person”, 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 joint venture partnership exclusively engaged in owning, managing, leasing or developing real or tangible personal property.

“Securityholder”, 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.

“Subsidiary”, a subsidiary of a specified person is an affiliate controlled by such person directly or indirectly through one or more intermediaries.

“Voting security”, shall include any security convertible into or evidencing a right to acquire a voting security.