20-1578. Purchase or acquisition of controlling stock

A. In the event any person or persons propose to purchase or acquire the controlling capital stock of any domestic title insurer, such person or persons shall first make application to the director for approval of such purchase or acquisition. The application shall contain the name and address of the proposed new owner or owners of the controlling stock, and the director shall approve the proposed purchase or acquisition only after he has become satisfied that such purchase or acquisition will not result in violation of the anti-rebate provisions or controlled business provisions of this article, that the proposed new owner or owners of the controlling stock are qualified by character, experience and financial responsibility to control and operate the title insurer in a lawful and proper manner, and that the interests of the stockholders and policyholders of the title insurer and the interests of the public generally will not be jeopardized by the proposed change in ownership and management. If the director does not, by affirmative action, approve or disapprove the proposed purchase or acquisition within thirty days after the date on which such application was so filed with him, the proposed purchase or acquisition shall be deemed to be approved at the expiration of such thirty-day period.

B. No such purchase or acquisition of a domestic title insurer shall be effectuated unless approved as provided in subsection A of this section.

C. In the event the director disapproves the proposed purchase or acquisition, he shall give written notice thereof to the person or persons so applying for approval, setting forth in detail the reasons for disapproval.