INSURANCE COMMISSIONER
| In the Matter of the Disclaimer of Control in relation to the Acquisition of Federated American Insurance Co., National Merit Insurance Co., Unigard Insurance Company, and Unigard Indemnity Company, Authorized insurance companies | ) ) ) ) ) ) ) |
No. G-02-04 NOTICE OF HEARING |
Riddell Williams P.S.
1001 Fourth Avenue Plaza, Suite 4500
Seattle, WA 98145-1065
(Counsel for BZ Group)
William M Clumper
Unigard
15805 NE 24th Street
Bellevue, WA 98008-2409
The Credit Suisse Group is the ultimate parent of Federated
American Insurance Company, National Merit Insurance Company,
Unigard Insurance Company and Unigard Indemnity Company, all
Washington domestic insurance companies. On or about May 19,
2000 BZ Gruppe Holding Aktiengesellschaft, a Swiss Corporation
acquired additional shares of Credit Suisse Group, which resulted
in BZ Gruppe holding 10.26% of the voting rights of Credit Suisse
Group. On October 24, 2000 BZ Gruppe filed a disclaimer of
control with the Insurance Commissioner of the State of
Washington.
RCW 48.31B.005 defines control as the power, direct or indirect,
of any entity to direct the management and policies of an
insurer. That statute creates a presumption of control wherever
any entity acquires ten percent or more of the voting power of an
insurer. In its disclaimer of control BZ Gruppe stated that it
had no intention of exercising control over the Credit Suisse
Group. Chapter 48.31B RCW requires certain specific filings and
approval by the Commissioner prior to the acquisition of control
of a Washington domestic insurer.
YOU ARE HEREBY NOTIFIED that a hearing will be held commencing Thursday,
February 21, 2002, at 10:00 a.m. Pacific Standard Time in the 2nd
Floor Conference Room of the Insurance Commissioner's Office at
420 Golf Club Road, Lacey, Washington 98503, to consider all
appropriate action concerning the acquisition of in excess of 10%
of the voting rights of Credit Suisse Group the ultimate parent
of Federated American Insurance Company, National Merit Insurance
Company, Unigard Insurance Company and Unigard Indemnity Company
by BZ Gruppe Holding Aktiengesellschaft.
The hearing will be held under the authority granted the
Commissioner by Chapter 48.04 RCW, RCW 48.31B.015 and RCW 48.31B.025(11).
The basic facts relied upon are those set forth in the Disclaimer
of Control filed with the Commissioner. The complete Disclaimer
of Control will be made part of the record of the hearing.
The Commissioner has not taken, and will not take, any position
on this matter prior to entry of the hearing order.
All parties may be represented at the hearing. They may examine
witnesses and fully respond and present evidence and argument on
all issues involved, as required by the Administrative Procedure
Act. The hearing will be governed by the Administrative
Procedure Act, Chapter 34.05 RCW, and the model rules of
procedure contained in Chapter 10-08 WAC. A party who fails to
attend or participate in any stage of the proceeding may be held
in default in accordance with Chapter 34.05 RCW. The
Commissioner will be represented by James E. Tompkins, Assistant
Deputy Commissioner.
Deputy Insurance Commissioner James T. Odiorne has been
designated to hear and determine this matter. His address is
Office of the Insurance Commissioner, Post Office Box 40259,
Olympia, Washington 98504-0259. His telephone number is (360)
407-0420.
ENTERED AT OLYMPIA, WASHINGTON, this 22th day of January, 2002.
| Mike Kreidler Insurance Commissioner |
|
| By: | |
| JAMES T. ODIORNE, CPA, JD Deputy Insurance Commissioner Company Supervision Division |