What constitutes an 'affiliated group'?

An 'affiliated group' refers to a collective of entities that are interconnected through various forms of ownership or control. This means that the entities within the group share a significant relationship, typically characterized by having a common parent company that exercises control over them. The key aspect here is the affiliation, which implies a degree of financial or operational collaboration among the entities, distinguishing them from unrelated businesses that do not share this bond.

In the context of surplus lines and insurance, recognizing what constitutes an 'affiliated group' is crucial as it can impact regulatory requirements, licensing, and reporting obligations. The affiliation may also affect how businesses leverage their combined resources, access markets, or manage underwriting risks.

The other alternatives do not capture the essential nature of an affiliated group. For instance, a group of insurers licensed in the Commonwealth, while related by licensing, may not be affiliated unless they are under common ownership. A collection of unrelated business entities lacks the necessary relationship to be considered an affiliated group. Lastly, simply having any group of businesses under common ownership doesn't fully encapsulate the concept without acknowledging the connections or collaborations between those entities. Thus, option C accurately describes the definition as it recognizes the interconnected nature of the entities involved.