§ 508B.5 — Appointment of consultant

Iowa § 508B.5

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 508B: CONVERSION FROM MUTUAL COMPANY TO STOCK COMPANY

Text

1. A plan may provide for the appointment by the mutual company of a person as defined
in section 4.1, subsection 20, who is qualified to act as a consultant. The appointment of
the consultant shall be reviewed by the commissioner and unless the commissioner finds
the consultant unqualified, the consultant shall carry out the duties required by the mutual
company and this chapter.
2. The consultant may assist in determining the equity of the policyholders or value of the
mutual company. The consultant may consider the value of the consideration to be given to
the participating policyholders in exchange for their membership interests and may consider
the valuations necessary to carry out the plans provided for in section 508B.3. Valuations
shall be made taking into account the latest filed annual statement of the mutual company,
updated to the effective date of the conversion plan, and any significant developments
occurring subsequent to the date of the statement.
3. The findings of the consultant may be modified by the mutual company at any time so
long as the results are not unfair or inequitable to policyholders.
4. If it can be shown by the mutual company to the commissioner that an underwriter of
the shares is a qualified person, the underwriter may be appointed as the consultant.