Section 2690.91 - DefinitionsFor purposes of section 2690.94, the following terms shall have the respective meanings hereinafter set forth:
(a) "Investment Consultant" shall refer, as appropriate, to either a natural person or a company engaged in the evaluation and assessment of derivative transactions, assigned by the Commissioner to perform the work authorized under section 1211.(b) "Affiliate" or "affiliation" is defined as follows:(1) Parent subsidiary. A parent subsidiary relationship exists when one corporation directly or indirectly owns shares possessing more than 10 percent of the voting power of another corporation.(2) Otherwise related business entity. Business entities, including corporations, partnerships, joint ventures and any other organizations and enterprises operated for profit, which do not have a parent subsidiary relationship are otherwise related if any one of the following three tests is met:(A) One business entity has a controlling ownership interest in the other business entity.(B) There is shared management and control between the entities. In determining whether there is shared management and control, consideration shall be given to the following factors: 1. The same person or substantially the same person owns and manages the two entities;2. There are common or commingled funds or assets;3. The business entities share the use of the same offices or employees, or otherwise share activities, resources or personnel on a regular basis;4. There is otherwise a regular and close working relationship between the entities;(C) A controlling owner (50% or greater interest as a shareholder or as a general partner) in one entity also is a controlling owner in the other entity.(c) "Conflict of interest" -- an Investment Consultant has reportable conflicts of interest with regard to a particular company if the Investment Consultant has one or more economic interests in that company.(1) "Economic interests" -- there are three types of economic interests. (A) Investment in the Company -- The Investment Consultant has a direct or indirect investment worth two thousand dollars ($2,000) or more in the Company.(B) Sources of Income -- 1. The Investment Consultant has received income from the Company, or affiliated company, within the last 12 months or during the period of time for which the examination will apply.2. The Investment Consultant holds or held a position in the Company, or affiliated company, within the last 12 months or during the period of time for which the examination will apply. Such position includes, but is not limited to, director, officer, partner, trustee, employee, or any position of management.(C) Sources of Gifts -- The Investment Consultant has received from the Company, or affiliated company, gifts with a fair market value of three hundred sixty dollars ($360)1 or more within the last 12 months or during the period of time for which the examination will apply.(d) "Company" is a domestic insurance company, or a group of insurance companies that includes a domestic insurance company, being examined and also includes those entities contracted by insurance company (ies) to perform investment management, provide investment advice, and any other related investment services. __________
1 This threshold amount is linked to the threshold established by the Fair Political Practices Commission in California Code of Regulations, Title 2, Division 6, Section 18703.4. The terms of section 18703.4 and any amendments to it duly adopted by the FPPC are hereby incorporated by reference.
Cal. Code Regs. Tit. 10, § 2690.91
1. New section filed 12-19-2006; operative 1-18-2007 (Register 2006, No. 51). Note: Authority cited: Section 1211(l), Insurance Code. Reference: Section 1211, Insurance Code; and California Code of Regulations, Title 2, Chapter 7, Sections 18703.1 and 18703.4.
1. New section filed 12-19-2006; operative 1-18-2007 (Register 2006, No. 51).