§ 26.1-12.2-09 — Rights of members whose policies are issued after adoption of the plan of conversion and before effective date

North Dakota § 26.1-12.2-09

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-12.2: Mutual Property and Casualty Insurance Company Conversion

Text

5. "Issued minority shares" means the number of shares issued by a subsidiary
insurance company or subsidiary holding company of a mutual holding company in all
minority stock offerings.
6. "Minority stock offering" means an offering of capital stock by a subsidiary insurance
company or subsidiary holding company controlled by a mutual holding company in
which less than fifty percent of the voting stock of the subsidiary insurance company or
subsidiary holding company is offered and sold under this chapter or chapter
26.1-12.1.
7. "Mutual company" means a mutual property and casualty insurance company
domiciled in this state.
8. "Mutual holding company" means:
a. A corporation resulting from a reorganization of a mutual company under chapter
26.1-12.1; or
b. A domestic corporation surviving or resulting from a merger or consolidation with
a corporation that resulted from a reorganization of a mutual insurer under the
laws of any other jurisdiction as provided by section 26.1-12.1-03.
9. "Participating policy" means a policy that grants a holder the right to receive dividends
if, as, and when declared by the mutual company.
10. "Plan of conversion" or "plan" means a plan adopted by the governing body of a
mutual company or mutual holding company to convert into a stock company or stock
insurance holding company in accordance with the requirements of this chapter.
11. "Policy" means an insurance policy.
12. "Standby investor" means any person that has agreed in writing to purchase all or a
portion of the capital stock to be sold in a conversion which is not subscribed by
eligible members.
13. "Subscription right" means the nontransferable right to purchase, for a period of not
less than forty-five days, the stock of the converted stock company, its proposed
subsidiary holding company, or an unaffiliated stock insurance company or other
corporation or entity that will acquire the stock of the converted stock company.
14. "Voting member" means a member who is an eligible member and is also a member of
the converting mutual company as of a date not more than ninety days before the date
of the meeting at which the plan of conversion must be voted upon by members.