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2001 SESSION

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HB 2255 Mutual insurers; conversion to stock insurers, etc.

Introduced by: Clifton A. (Chip) Woodrum | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Mutual insurers; formation of mutual holding companies. Establishes a procedure for the formation of mutual insurance holding companies. The measure also provides for the conversion of mutual insurance holding companies to stock holding companies. Plans must be approved by the State Corporation Commission and receive the approval of two-thirds of the votes cast by eligible members at a meeting in person or by proxy.

SUMMARY AS PASSED HOUSE:

Mutual insurers; formation of mutual holding companies. Establishes a procedure for the formation of mutual insurance holding companies. The measure also provides for the conversion of mutual insurance holding companies to stock holding companies. Plans must be approved by the State Corporation Commission and receive the approval of two-thirds of the votes cast by eligible members at a meeting in person or by proxy.

SUMMARY AS INTRODUCED:

Mutual insurers; conversion to stock insurers; formation of holding companies. Establishes an alternative procedure for the conversion of domestic mutual insurers to domestic stock insurers, and a procedure for the formation of mutual insurance holding companies. The measure also provides for the conversion of mutual insurance holding companies to stock holding companies. Conversion plans are required to provide that eligible members are to receive subscription rights to purchase a portion of the capital stock of the new stock company. Plans must be approved by the State Corporation Commission and receive the approval of two-thirds of the votes cast by eligible members in person or by proxy.