National Merit sale
Commissioner Kreidler approved the sale of National Merit Insurance Company to Trinity Universal Insurance Company in early 2009.
History of the process
In late September 2008, we received the application for sale from National Merit. In mid-October, we requested additional information and received that information in mid-November. We deemed the application complete in December.
What we look at
In all proposed sales, the companies must file an application (Form A) that details:
- Financial information for both companies.
- Who will operate the company at the highest levels.
- Their business plan.
- Market competition impacts.
Under state law, the commissioner must approve the deal unless:
- It would substantially lessen competition or create a monopoly.
- The buyer’s plans are unfair and unreasonable to the policyholders of the insurance company.
- The buyer isn't competent, honest or financially sound enough to run an insurance company.
- It is in some other way “hazardous or prejudicial to the insurance-buying public."