§ 7306 — Conversion of advance premium corporations or assessment corporations into mutual property/casualty insurance companies

§ 7306. Conversion of advance premium corporations or assessment\ncorporations into mutual property/casualty insurance companies. Any\nadvance premium corporation or assessment corporation, as defined in\nsection six thousand six hundred two of this chapter, which has in force\ncontracts of insurance of the kinds which domestic mutual\nproperty/casualty insurance companies, as defined in subsection (a) of\nsection one hundred seven of this chapter, may be authorized to do,\ncovering not less than three hundred separate risks and on which the\npremiums in force or the most recent annual assessment aggregates not\nless than one hundred thousand dollars, may be converted into and\nlicensed as a domestic mutual property/casualty insurance company in the\nmanner prescribed in this section and subject to any other requirements\nof law. The successive steps shall be as follows:\n (a) A majority of the board of directors of the corporation shall\nadopt a resolution approving the proposed conversion and appointing a\ncommittee of not less than three directors to prepare a draft of a\nproposed declaration, charter and by-laws.\n (b) The proposed declaration, charter and by-laws shall be submitted\nwith an appropriate resolution to the board for its approval.\n (c) A majority of the board at any regular or special meeting thereof\nshall approve by resolution the proposed declaration, charter and\nby-laws, which shall conform to the requirements of this chapter\nrelative to the contents of charters and by-laws of domestic mutual\nproperty/casualty insurance companies hereafter organized, with such\nadditions as the superintendent shall approve to accommodate insurance\ncontracts then in force. Such resolution shall also direct that notice\nthat the proposed conversion will be submitted for approval at the next\nannual meeting of members or at a special meeting to be called for that\npurpose be mailed, with postage prepaid, to all members at their last\nknown post office addresses respectively, at least thirty days prior to\nthe date of the meeting, together with copies of the resolutions\nprovided for in subsections (a) and (b) hereof and this subsection and\nof the proposed declaration, charter and by-laws.\n (d) At least two-thirds of the votes of members voting at such meeting\neither in person or by proxy, if the corporation's by-laws provide for a\nvote by proxy, shall be cast in favor of the proposed conversion and of\nthe adoption of the proposed declaration and charter and proposed\nby-laws. A resolution shall similarly be adopted instructing the\npresident and secretary to execute or certify and file all necessary\npapers and instruments incident to the proposed conversion.\n (e) The proposed declaration and charter executed by the president and\nsecretary together with proof of mailing of notice of members' meeting\nand copies of all other necessary papers and instruments incident to the\nproposed conversion, together with a certificate of their adoption as\nprovided for herein, subscribed and affirmed by such officers as true\nunder the penalties of perjury, shall be submitted to the\nsuperintendent.\n (f) If the superintendent finds, by such investigation or examination\nas he deems appropriate to make, that the corporation meets the initial\nsurplus and reserve requirements for domestic mutual fire insurance\ncompanies organized and licensed immediately before July first, nineteen\nhundred eighty-two, to do the kinds of insurance business for which the\ncorporation is to be licensed, and complies with all other provisions of\nthis section, he shall approve the declaration and charter and by-laws\nand file the same together with the other documents submitted as\nrequired by subsection (e) hereof in his office, and coincident with\nsuch filing such advance premium corporation or assessment corporation\nshall become a domestic mutual property/casualty insurance company.\n (g) Upon compliance by the corporation with the foregoing and with any\nother lawful prerequisites for the issuance of an insurer's license, the\nsuperintendent may, in accordance with subsection (d) of section one\nthousand one hundred two of this chapter, grant a license to such mutual\nproperty/casualty insurance company. Such corporation shall thereafter\nbe subject to all the provisions and requirements of this chapter\nrelative to mutual property/casualty insurance companies.\n