CHAPTER 14. MODIFIED CONVERSION REQUIREMENTS FOR COMPANIES IN HAZARDOUS FINANCIAL CONDITION
IC 27-15-14
Chapter 14. Modified Conversion Requirements for Companies
in Hazardous Financial Condition
IC 27-15-14-1
Qualifications for modified conversion; waivers or modifications
of notice requirements
Sec. 1. (a) If a domestic mutual insurance company:
(1) is insolvent, as defined in IC 27-9-1-2(l);
(2) does not meet the minimum surplus requirements of
IC 27-1-6-15; or
(3) in the judgment of the commissioner, is in a hazardous
financial condition;
its board of directors may adopt, and the commissioner may approve,
any plan of conversion and amendment to the articles of
incorporation that, on the effective date of the conversion, would
provide for the former mutual to have paid-in capital stock and
surplus in an amount not less than the minimum requirements of
IC 27-1-6-14(c) and IC 27-1-6-14(e) and an RBC level greater than
its company action RBC level.
(b) The commissioner may allow waivers or material
modifications of the requirement to give any notices to members and
policyholders, to obtain member approval of the proposed plan of
conversion or amendment to the articles of incorporation of the
converting mutual, or to distribute consideration to members if the
value of a converting mutual described in subsection (a) does not in
the judgment of the commissioner warrant any such notices,
approvals, or distribution under the circumstances, including the
expenses involved in a distribution of consideration.
As added by P.L.94-1999, SEC.3.
IC 27-15-14-2
Application for approval; required descriptions
Sec. 2. The application for approval of a plan of conversion and
an amendment to the articles of incorporation described in section 1
of this chapter must include a description of how the converting
mutual will meet the statutory surplus and capital requirements on
the date the plan of conversion is completed, which may involve the
issuance and sale directly to one (1) or more purchasers of the capital
stock of the former mutual or of a parent company.
As added by P.L.94-1999, SEC.3.
IC 27-15-14-3
Approval of application; public hearing
Sec. 3. The commissioner shall approve the application and
permit the conversion under a plan of conversion and an amendment
to the articles of incorporation described in this chapter if the
commissioner finds, following a public hearing, that the plan of
conversion and the amendment to the articles of incorporation are in
the best interests of the members and policyholders of the converting
mutual, without regard to their membership interests.
As added by P.L.94-1999, SEC.3.
IC 27-15-14-4
Supplemental requirements for modified conversion
Sec. 4. The requirements of this chapter are in addition to, and
may be combined with, any other filings, approvals, or hearings
required by IC 27-1-23 or otherwise by law.
As added by P.L.94-1999, SEC.3.