District of Columbia § 31-735 Applicability; membership interest; powers.

District of Columbia Statutes

§ 31-735 — Applicability; membership interest; powers.

District of Columbia·Title 31 Insurance and Securities.·Ch. 7 Holding Companies.·Subch. II Mutual Holding Companies.

(a)Section 19 of the Life Insurance Act is not applicable to a reorganization or merger pursuant to this section.

(b)A membership interest in a domestic mutual insurance holding company shall not constitute a security as defined in § 31-603 .

(c)A mutual holding company created under this subchapter shall have the same powers to borrow or assume liability as a mutual insurance company organized under the provisions of District law.

(d)The requirement of § 31-4421 that every director of a stock company organized under Chapter 44 of this title shall be a stockholder thereof is not applicable to a mutual insurance holding company, any intermediate insurance holding company, or any reorganized insurance company established pursuant to this subchapter. Every director of a mutual insuranc

Free access — add to your briefcase to read the full text and ask questions with AI

(a) Section 19 of the Life Insurance Act is not applicable to a reorganization or merger pursuant to this section.

(b) A membership interest in a domestic mutual insurance holding company shall not constitute a security as defined in § 31-603 .

(c) A mutual holding company created under this subchapter shall have the same powers to borrow or assume liability as a mutual insurance company organized under the provisions of District law.

(d) The requirement of § 31-4421 that every director of a stock company organized under Chapter 44 of this title shall be a stockholder thereof is not applicable to a mutual insurance holding company, any intermediate insurance holding company, or any reorganized insurance company established pursuant to this subchapter. Every director of a mutual insurance holding company, any intermediate holding company, and any reorganized insurance company shall be a policyholder of the reorganized insurance company, having purchased a policy in a manner that shall not unfairly discriminate in favor of such director, either before or after the reorganization pursuant to § 31-731 or § 31-732 .

(1) A mutual insurance holding company shall not be authorized to pay dividends or make distributions to any mutual insurance holding company member except as may be expressly provided by the Commissioner.

(2) Neither the adoption nor the implementation of a plan of reorganization, or a plan of merger or other affiliation, involving a mutual insurance holding company, shall be deemed to give rise to any obligation by or on behalf of a mutual insurance company or a mutual insurance holding company to make any distribution or payment to any member or policyholder, or to any other person, fund, or entity of any nature whatsoever, in connection with the ownership, control, benefits, policies, purpose, or nature of a mutual insurance company or a mutual insurance holding company, or otherwise, except as expressly provided in a plan of reorganization, a plan of merger or other affiliation involving a mutual insurance holding company, or as expressly approved by the Commissioner.

(f) A mutual insurance holding company created under this subchapter shall exercise any other power or engage in any activity permitted to a mutual insurance company organized under District laws.

District of Columbia § 31-735 (Applicability; membership interest; powers.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.