§ 7316 — Conversion of savings banks life insurance into a mutual life insurance company

§ 7316. Conversion of savings banks life insurance into a mutual life\ninsurance company. (a) (1) Upon compliance with the requirements of this\nsection, the life insurance business conducted by all savings and\ninsurance banks as defined in article six-A of the banking law may be\nconverted into and transferred to a corporation formed as set forth in\nsubsection (b) of this section and licensed as a mutual life insurance\ncompany to do the kinds of insurance business specified in paragraphs\none, two and three of subsection (a) of section one thousand one hundred\nthirteen of this chapter. Such conversion and transfer shall be effected\npursuant to a plan approved by the superintendent and the superintendent\nof banks. Such plan shall be submitted by the trustees of savings banks\nlife insurance fund to the superintendent and the superintendent of\nbanking in writing and shall set forth in full the terms and conditions\nthereof.\n (2) Prior to the submission thereof to the superintendent and the\nsuperintendent of banks, such plan shall be approved by the vote of at\nleast three-fourths of the trustees of savings banks life insurance fund\nand then by the vote of at least three-fourths of all the savings and\ninsurance banks at a meeting of all such banks called for the purpose of\nsubmitting such plan to such banks for approval. Written notice of such\nmeeting shall be given to each such bank by first class mail addressed\nto the chairman or president of the bank at the bank's principal office\nnot less than thirty days prior to the date of such meeting. Such notice\nshall state the purpose for which the meeting is called and shall be\naccompanied by a true and complete copy of such plan. At such meeting\nthe vote of each such bank shall be cast by the chairman or president\nthereof or by an officer thereof designated by the chairman or president\nin a writing addressed to and received by the secretary of savings banks\nlife insurance fund prior to the date of such meeting. The results of\nthe vote and the minutes of the meeting shall be submitted to the\nsuperintendent and the superintendent of banks.\n (3) The superintendent and the superintendent of banks each may\napprove the plan if he finds that it conforms to the requirements of law\nand is fair and equitable to the holders of insurance policies issued by\nthe life insurance departments of the savings and insurance banks. The\nplan submitted shall include a filing in accordance with section\nthirteen hundred twenty-two of this chapter which shows that the\nproposed mutual insurer's risk based capital level is in excess of the\ncompany action level and there is no company action level event. Upon\nthe approval by the superintendent and the superintendent of banks of\nthe plan, the trustees of savings banks life insurance fund shall form a\ncorporation as set forth in subsection (b) of this section to which the\nlife insurance business conducted by all the savings and insurance banks\nshall be transferred.\n (b)(1) To form the corporation described in subsection (a) of this\nsection, the trustees of savings banks life insurance fund shall submit\nto the superintendent, in writing, a proposed declaration, charter and\nby-laws for such corporation. Such submission to establish a licensed\ncorporation shall conform to the requirements of section one thousand\ntwo hundred one of this chapter.\n (2) If the superintendent finds that the submission complies with the\nrequirements of section one thousand two hundred one of this chapter, he\nshall file the declaration, charter and by-laws in his office.\nCoincident with such filing, the corporation that is the subject of such\ndeclaration, charter and by-laws shall be licensed as a mutual life\ninsurance company to do the kinds of insurance business specified in\nparagraphs one, two and three of subsection (a) of section one thousand\none hundred thirteen of this chapter and shall have all the powers of\nsuch a corporation under this chapter. If requested by the corporation,\nthe superintendent shall issue a certified copy of the declaration and\ncharter and a certificate of incorporation executed by him in the name\nor the people of the state.\n (3) The corporation formed pursuant to the provisions of this\nsubsection shall be liable for, and shall hold savings banks life\ninsurance fund, its trustees, officers and employees harmless from, all\nobligations of and claims against savings banks life insurance fund, its\ntrustees, officers or employees related to or arising out of the powers\nor duties of savings banks life insurance fund under article six-A of\nthe banking law. Such corporation shall be liable for, and shall hold\neach savings and life insurance bank, its directors, officers and\nemployees harmless from, all obligations of and claims against such\nsavings and life insurance bank, its directors, officers and employees\nrelated to or arising out of each and every insurance policy and each\nand every annuity contract issued by the life insurance department of\nsuch bank.\n