§ 26.1-12.2-14 — Converting mutual company insolvent or in hazardous financial condition

North Dakota § 26.1-12.2-14

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

Text

condition.
1. If a converting mutual company seeking to convert under this chapter is insolvent or is
in hazardous financial condition according to information supplied in the mutual
company's most recent annual or quarterly statement filed with the insurance
department or as determined by a financial examination performed by the insurance
department, the requirements of this chapter, including notice to and policyholder
approval of the plan of conversion, may be waived at the discretion of the
commissioner. If a waiver under this section is ordered by the commissioner, the
converting mutual company shall specify in the mutual company's plan of conversion:
a. The method and basis for the issuance of the converted stock company's shares
of its capital stock to an independent party in connection with an investment by
the independent party in an amount sufficient to restore the converted stock
company to a sound financial condition.
b. That the conversion must be accomplished without granting subscription rights or
other consideration to policyholders.
2. This section does not alter or limit the authority of the commissioner under any other
provisions of law, including receivership and liquidation provisions applicable to
insurance companies.