§ 27-14.5-2-6 — Contents of plan of reorganization

Indiana § 27-14.5-2-6

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 14.5: MUTUAL INSURANCE HOLDING COMPANY
• Ch. 2: Mutual Insurance Company Reorganization

Text

(a) A plan of reorganization filed with the
commissioner under this chapter must include the following:
(1) A description of all significant terms of the proposed
reorganization.
(2) Any plan to issue stock that may be proposed in connection
with the plan of reorganization.
(3) A statement describing how the reorganization is fair and
equitable to the members.
(4) With respect to participating policies and contracts of the
reorganized insurer, a description of the current dividend
practices of the mutual insurance company and the dividend
practices to be followed by the reorganized insurer on and after
the effective date of the plan of reorganization.
(5) Information sufficient to demonstrate that the financial
condition of the mutual insurance company will not be diminished
upon reorganization.
(6) Provisions that provide the following:
(A) Immediate membership in the mutual insurance holding
company for all existing members of the mutual insurance
company.
(B) A member's interest in a mutual insurance holding company
may not be transferred, assigned, pledged, or alienated in any
manner except in connection with a transfer, assignment,
pledge, or alienation of the policy from which the member's
interest is derived.
(C) A member's interest in a mutual insurance holding company
will automatically terminate upon the lapse or other termination
of the policy from which the member's interest is derived.
(7) Provisions for the discretionary granting of membership
interests for existing or future policyholders of the reorganized
insurer and any other existing or future direct or indirect stock
insurance company subsidiary.
(8) Provisions to ensure that, in the event of proceedings for
rehabilitation or liquidation involving a stock insurance company
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 insurance company
subsidiary.
(9) The proposed articles of incorporation and bylaws of the
mutual insurance holding company, intermediate stock holding
company, and reorganized insurer or proposed amendments
thereto as necessary to effectuate the reorganization.
(10) 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 insurance company.
(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.
(12) A description of any plans for the initial sale of stock of the
intermediate stock holding company or reorganized insurer.
(13) With regard to a policy of the mutual insurance company in
force on the effective date of a plan of reorganization, a provision
that provides the policy continues to remain in force under the
policy's terms as the policy of the reorganized insurer.
(14) Any other information requested by the commissioner.
(b) A plan of reorganization that is filed with the commissioner
under this chapter may also include any other provision acceptable to
the commissioner.

Legislative History

As added by P.L.226-2023, SEC.30.