§ 8002 — Reorganization of mutual life insurer through formation of a mutual holding company; contents of plan

New York § 8002

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 80: Mutual Holding Company

Text

§ 8002. Reorganization of mutual life insurer through formation of a\nmutual holding company; contents of plan. (a) A mutual life insurer\nhaving on the adoption date admitted assets of less than ten billion\ndollars may be reorganized as a domestic stock life insurer with a\nmutual holding company by complying with the requirements of this\narticle.\n (b) The plan of reorganization shall contain provisions for:\n (1) the reorganizing insurer becoming a domestic stock life insurer;\n (2) the formation of a mutual holding company;\n (3) the members of the reorganizing insurer becoming members of the\nmutual holding company with membership interests therein, and the\nmembership interests in the reorganizing insurer being extinguished; and\n (4) at least fifty-one percent of the voting stock issued by the\nreorganized insurer being acquired and held, directly or through one or\nmore stock holding companies, by the mutual holding company.\n (5) the general terms for the establishment of the closed block or an\nalternative provision under subsection (b) of section eight thousand\nthree of this article and the proposed dividend policy under subsection\n(a) of section eight thousand three of this article; and\n (6) a plan of operation for the reorganized insurer including\nfinancial projections for a three-year period and a statement indicating\nits intentions with regard to issuing any nonparticipating business.\n (c) The plan of reorganization shall provide that the reorganization\nwill not change premiums or reduce policy benefits, values or guarantees\nor other policy obligations of the mutual life insurer, provided that\nthe plan of reorganization may provide that the reorganized insurer will\nbe able to make such changes and reductions as would be permitted under\nthis chapter if the mutual life insurer were not a reorganizing insurer\nunder this article.\n (d) The plan may provide for the formation of one or more stock\nholding companies.\n (e) The plan shall include the following as exhibits:\n (1) the proposed charters or certificates of incorporation of the\nreorganized insurer, the mutual holding company and any stock holding\ncompany or companies; and\n (2) the proposed by-laws of the reorganized insurer, the mutual\nholding company and any stock holding company or companies.\n