Section 1218. Regulation of stock ownership, interlocking directors and common management

(a) Any domestic insurer and  any  foreign  or  alien  insurer authorized to do business in this state may retain, invest in or
  acquire  all or any shares, or, by contract of reinsurance or otherwise,
  acquire the whole or a substantial part of  the  assets,  of  any  other
  insurer, or have a common management with any other insurer, unless such
  retention,  investment, acquisition or common management is inconsistent
  with any other provision of this chapter or unless the effect thereof:
    (1) in the case of a domestic or alien insurer, may  be  substantially
  to  lessen  competition  in  any  line  of  commerce in insurance in any
  section of the country or to tend to create a monopoly therein, or
    (2) in the case of a foreign insurer, may be substantially  to  lessen
  competition  in  any  line  of commerce in insurance in this state or to
  tend to create a monopoly therein.
    (b) No person shall serve as a director of two or more insurers  under
  this  chapter which are or during the next preceding two years have been
  engaged in writing directly the same  lines  of  commerce  in  insurance
  unless  such  interlocking  directorate  is  not  used  as  a  means  to
  substantially lessen competition generally in the business of  insurance
  or  create a monopoly therein, but any person otherwise qualified may be
  a director of  two  or  more  insurers  having  a  common  ownership  or
  management  which  is  not  otherwise  proscribed  if  such interlocking
  directorate  is  not  used  as  a  means  of   substantially   lessening
  competition  generally  in  the  business  of insurance or of creating a
  monopoly therein.
    (c) (1) Whenever the superintendent believes  this  section  is  being
  violated,  he  shall serve upon the insurer or insurers and the director
  or directors, as the case may be, a notice  pursuant  to  section  three
  hundred  three of this chapter of a hearing before the superintendent to
  be held not less than thirty days after such service and requiring  such
  insurer  or insurers and such director or directors, as the case may be,
  to show cause why an order should not  be  made  by  the  superintendent
  directing  such  insurer  or insurers and such director or directors, as
  the case may be, to cease and desist from such violation.
    (2) If, upon such hearing, the superintendent  finds  a  violation  of
  this  section  he  shall  issue  and  cause  to be served upon each such
  insurer or insurers and such director or directors, as the case may  be,
  an order reciting the facts found by him, and setting forth the respects
  in  which  there  has  been  a  violation, and directing such insurer or
  insurers and such director or directors, as the case may  be,  to  cease
  and desist from such violation and he may in such order direct each such
  insurer  to  divest itself of the shares or assets held or to rid itself
  of the directors serving contrary to the provisions of subsection (a) or
  (b) of this section.
    (3) A violation of any such cease and desist order shall,  subject  to
  judicial review, be deemed a violation of this chapter.
    (4)  The  attorney  general  may  maintain  a  proceeding upon his own
  information to prevent and restrain violations of this section  and  the
  judgment  therein  against any defendant may grant affirmative relief to
  the same extent as may the superintendent by an order issued pursuant to
  this section.
    (5) Any person, firm, corporation or association shall be entitled  to
  maintain  a  proceeding  to  obtain  injunctive  relief  against loss or
  damages by a violation of this section at whatever time  and  under  the
  same conditions and principles as when injunctive relief against conduct
  that  will  cause loss or damage is granted by the courts under the laws
  of this state governing such  proceedings.    In  such  proceeding,  the

  plaintiff  also may recover the damages sustained by him and the cost of
  suit, including a reasonable attorney's fee.
    (d)  Nothing  contained  in  this  section shall be deemed to alter or
  abridge any rights or remedies otherwise available to  any  person,  the
  superintendent and the attorney general under any law of this state.