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1996 SESSION

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SB 590 Insurance; conversion to domestic stock insurer.

Introduced by: John H. Chichester | all patrons    ...    notes | add to my profiles

SUMMARY:

Insurance; conversion to domestic stock insurer. Requires the State Corporation Commission to approve a plan of conversion from a domestic mutual insurer to a domestic stock insurer if, after notice and hearing, the SCC finds that (i) the terms and conditions of the plan are fair and equitable to the policyholders of the mutual insurer, (ii) the plan is subject to approval by a more than two-thirds vote by members of the mutual insurer, (iii) the plan allocates and directs that, except as provided in (iv), the entire stock ownership interests be distributed to the mutual insurer's policyholders, and (iv) in the case of a domestic mutual insurer that converted from a health services plan that was in existence prior to December 31, 1987, the conversion plan allocates and distributes to the State Treasurer, in addition to any shares of stock that the Commonwealth may be entitled to receive as a policyholder, shares of stock or cash or both with a value equal to the health services plan's surplus as of December 31, 1987, plus ten million dollars. The plan must also provide for appointment to the initial board of directors to the insurer's parent company one director from a list submitted by the Joint Rules Committee and one director from a list submitted by the Attorney General.


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