§ 8010 — Effect of reorganization

New York § 8010

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

Text

§ 8010. Effect of reorganization. Upon the effective date of a plan of\nreorganization in accordance with section eight thousand nine of this\narticle:\n (a) the reorganizing insurer shall immediately become a domestic stock\nlife insurer;\n (b) the members of the reorganizing insurer on the effective date\nshall immediately become members of the mutual holding company with\nmembership interests therein, and all membership interests in the\nreorganizing insurer shall be extinguished;\n (c) persons becoming policyholders of the reorganized insurer after\nthe effective date of the plan shall become members of the mutual\nholding company immediately upon issuance of the policy or contract;\n (d) one hundred percent of the voting stock issued by the reorganized\ninsurer shall be owned, directly or through one or more stock holding\ncompanies, by the mutual holding company, and at no time subsequent\nshall such mutual holding company own less than fifty-one percent of\nsuch voting stock; and\n (e) any other reorganization of the reorganizing insurer and its\nsubsidiaries specified in the plan shall become effective in accordance\nwith the terms of the plan. Except for the right to vote, the rights of\nall policyholders with respect to the reorganized insurer thereafter\nshall be as specified in their policies or contracts, in the charter of\nthe reorganized insurer and in the plan of reorganization.\n