The Hartford 2008 Annual Report Download - page 44

Table of Contents
Regulation and Premium Rates
Insurance companies are subject to comprehensive and detailed regulation and supervision throughout the United States.
The extent of such regulation varies, but generally has its source in statutes which delegate regulatory, supervisory and
administrative powers to state insurance departments. Such powers relate to, among other things, the standards of solvency
that must be met and maintained; the licensing of insurers and their agents; the nature of and limitations on investments;
establishing premium rates; claim handling and trade practices; restrictions on the size of risks which may be insured under a
single policy; deposits of securities for the benefit of policyholders; approval of policy forms; periodic examinations of the
affairs of companies; annual and other reports required to be filed on the financial condition of companies or for other
purposes; fixing maximum interest rates on life insurance policy loans and minimum rates for accumulation of surrender
values; and the adequacy of reserves and other necessary provisions for unearned premiums, unpaid losses and loss
adjustment expenses and other liabilities, both reported and unreported.
Most states have enacted legislation that regulates insurance holding company systems such as The Hartford. This
legislation provides that each insurance company in the system is required to register with the insurance department of its
state of domicile and furnish information concerning the operations of companies within the holding company system that
may materially affect the operations, management or financial condition of the insurers within the system. All transactions
within a holding company system affecting insurers must be fair and equitable. Notice to the insurance departments is
required prior to the consummation of transactions affecting the ownership or control of an insurer and of certain material
transactions between an insurer and any entity in its holding company system. In addition, certain of such transactions
cannot be consummated without the applicable insurance department’s prior approval. In the jurisdictions in which the
Company’s insurance company subsidiaries are domiciled, the acquisition of more than 10% of The Hartford’s outstanding
common stock would require the acquiring party to make various regulatory filings.
The extent of insurance regulation on business outside the United States varies significantly among the countries in which
The Hartford operates. Some countries have minimal regulatory requirements, while others regulate insurers extensively.
Foreign insurers in certain countries are faced with greater restrictions than domestic competitors domiciled in that particular
jurisdiction. The Hartford’s international operations are comprised of insurers licensed in their respective countries.
The Company has also submitted an application to participate in the U.S. Treasury Department’s Capital Purchase Program.
If the Company’s application is approved, and the Company purchases Federal Trust Corporation, it will become a savings
and loan holding company subject to regulation by the Office of Thrift Supervision.
Intellectual Property
We rely on a combination of contractual rights and copyright, trademark, patent and trade secret laws to establish and
protect our intellectual property.
We have a worldwide trademark portfolio that we consider important in the marketing of our products and services,
including, among others, the trademarks of The Hartford name, the Stag Logo and the combination of these two marks. The
duration of trademark registrations varies from country to country and may be renewed indefinitely subject to
country-specific use and registration requirements. We regard our trademarks as extremely valuable assets in marketing our
products and services and vigorously seek to protect them against infringement.
Employees
The Hartford had approximately 31,000 employees as of December 31, 2008.
Available Information
The Hartford makes available, free of charge, on or through its Internet website (http://www.thehartford.com) The
Hartford’s annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to
those reports filed or furnished pursuant to Section 13(a) of the Exchange Act as soon as reasonably practicable after The
Hartford electronically files such material with, or furnishes it to, the SEC.
21
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009