§ 27-15-2-2 — Required provisions

Indiana § 27-15-2-2

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 15: DEMUTUALIZATION OF MUTUAL INSURANCE
• Ch. 2: Plan of Conversion

Text

The plan of conversion, other than a simple
plan of conversion, must do the following in accordance with this
article:
(1) Describe the manner in which the proposed conversion will
occur and the insurance and any other companies that will result
from or be directly affected by the conversion, including the
former mutual and any parent company.
(2) Provide that the membership interests in the converting
mutual will be extinguished as of the effective date of the
conversion.
(3) Require the distribution to the eligible members, upon the
extinguishing of their membership interests, of aggregate
consideration equal to the fair value of the converting mutual.
(4) Describe the manner in which the fair value of the converting
mutual has been or will be determined.
(5) Describe the form or forms and amount, if known, of
consideration to be distributed to the eligible members.
(6) Specify relevant classes, categories, or groups of eligible
members, and describe and explain any differences in the form or
forms and amount of consideration to be distributed to or among
the eligible members.
(7) Require and describe the method or formula for the fair and
equitable allocation of the consideration among the eligible
members.
(8) Provide for the determination and preservation of the
reasonable dividend expectations of eligible members and other
policyholders with policies that provide for the distribution of
policy dividends, through establishment of a closed block or other
method acceptable to the commissioner.
(9) Provide that each member and other policyholder of the
converting mutual will receive notification of the address and
telephone number of the converting mutual and the former
mutual, if different, along with the notice of hearing outlined in
IC 27-15-4-4.
(10) Include other provisions as the converting mutual determines
to be necessary.

Legislative History

As added by P.L.94-1999, SEC.3.