§ 27-14.5-3-6 — Requirements for plan to issue stock in a public offering

Indiana § 27-14.5-3-6

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 14.5: MUTUAL INSURANCE HOLDING COMPANY
• Ch. 3: Issuance of Capital Stock

Text

A plan to issue stock in a public offering
(other than an offering in a private placement or solely in connection
with a consolidation, merger, share exchange, or other business
combination or an offering of stock in connection with an employee
benefit plan or under a stock option plan) must do the following:
(1) Provide for each eligible member to receive, without payment,
nontransferable subscription rights to purchase a portion of the
stock of the applicant and describe how the offering price of the
stock that may be purchased was established or the method by
which that price will be determined, except that subscription
rights need not be granted to an eligible member who resides in
a foreign country or other jurisdiction for which the commissioner
determines that any registration, qualification, or filing
requirements would be impracticable or unduly burdensome for
reasons of cost or otherwise.
(2) Specify how subscription rights are to be allocated in whole
shares of stock among the eligible members.
(3) Provide a fair and equitable means for allocating shares of
stock in the event of an over-subscription to the shares by eligible
members exercising subscription rights received under this
chapter.
(4) Provide that any portion of shares not subject to subscription
rights and any shares of stock not subscribed to by eligible
members exercising subscription rights received under this
chapter, or not subscribed to by an employee benefit plan or by
directors, officers, and employees exercising subscription rights,
will be sold:
(A) in a public offering through an underwriter;
(B) through private placement; or
(C) by any other method approved by the commissioner that is
fair and equitable to members.
(5) Require a person that exercises subscription rights to:
(A) purchase at least a minimum number of shares of stock; or
(B) a minimum dollar amount of shares of stock.
(6) Require that a majority of the members of the board of
directors of the mutual insurance holding company must be
persons who are not officers or employees of the mutual insurance
holding company or any of its subsidiaries, unless this
requirement is waived by the commissioner upon a showing of
good cause.
(7) Require that at least three (3) members of the board of
directors of the:
(A) intermediate stock holding company; or
(B) reorganized insurer if there is no intermediate stock holding
company;
of the mutual insurance holding company must be persons who
are not officers or employees of the mutual insurance holding
company or any of its subsidiaries, unless this requirement is
waived by the commissioner upon a showing of good cause.
(8) Provide that the mutual insurance holding company will adopt
articles of incorporation or articles of amendment that include a
provision prohibiting the mutual insurance holding company from
waiving any dividends from its subsidiaries except:
(A) under conditions specified in the articles of incorporation;
and
(B) after approval of the waiver by the board of directors of the
mutual insurance holding company and by the commissioner.

Legislative History

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