A domestic mutual insurer shall file a proposed plan of reorganization approved by a vote of not less than two-thirds (2/3) of the members of its board of directors for review and approval with the Insurance Commissioner. The proposed plan of reorganization shall be accompanied by a nonrefundable fee of one thousand dollars ($1,000). A plan of reorganization shall include the following, at a minimum:
(1)An analysis of the benefits and risks attendant to the proposed reorganization, including the rationale and comparative benefits and risks of a demutualization;
(2)A statement of how the plan is fair and equitable to the policyholders;
(3)Information sufficient to demonstrate that the financial condition of the mutual insurer will not be diminished upon reorganization;
Free access — add to your briefcase to read the full text and ask questions with AI
A domestic mutual insurer shall file a proposed plan of reorganization approved by a vote of not less than two-thirds (2/3) of the members of its board of directors for review and approval with the Insurance Commissioner. The proposed plan of reorganization shall be accompanied by a nonrefundable fee of one thousand dollars ($1,000). A plan of reorganization shall include the following, at a minimum: (1) An analysis of the benefits and risks attendant to the proposed reorganization, including the rationale and comparative benefits and risks of a demutualization; (2) A statement of how the plan is fair and equitable to the policyholders; (3) Information sufficient to demonstrate that the financial condition of the mutual insurer will not be diminished upon reorganization; (4) Provisions to ensure immediate membership in the mutual insurance holding company for all existing policyholders of the mutual insurer; (5) Provisions for membership interests for future policyholders of the reorganized stock insurer; (6) Provisions to ensure that, in the event of proceedings for rehabilitation or liquidation involving a stock insurer subsidiary of the mutual insurance holding company, the assets of the mutual insurance holding company will be available to satisfy the policyholder obligations of the stock insurer subsidiary; (7) Provisions for periodic distribution of accumulated mutual insurance holding company earnings; (8) Certified copies of the proposed articles of incorporation and bylaws of the mutual insurance holding company, intermediate stock holding company, and reorganized stock insurer or proposed amendments thereto as necessary to effectuate reorganization; (9) A certification that the plan of reorganization has been duly adopted by a vote of not less than two-thirds (2/3) of the members of the board of directors of the mutual insurer; (10) A certification adopted by not less than two-thirds (2/3) of the members of the board of directors of the mutual insurer that the plan of reorganization is fair and equitable to the policyholders; (11) The names, addresses, and occupational information of all corporate officers and all members of the board of directors of the proposed mutual insurance holding company in the case of a reorganization described in § 23-69-304(a)(1) ; (12) A description of the nature and content of the annual report and financial statement to be sent by the mutual insurance holding company to each member; (13) A description of the number of members of the board of directors of the mutual insurance holding company required to be policyholders; (14) A description of any plans for the initial sale of stock of the intermediate stock holding company or reorganized stock insurer; (15) A form of the proposed notice to be mailed by the mutual insurer to its policyholders as required in § 23-69-308 ; and (16) Any other information requested by the commissioner.