83-31-127 - Alternative conversion plans that do not rely on nontransferable subscription rights.
§ 83-31-127. Alternative conversion plans that do not rely on nontransferable subscription rights.
(1) The board of directors may adopt a conversion plan that does not rely wholly or partially on issuing nontransferable subscription rights to members to purchase stock of the converted stock company if the commissioner finds that the alternative conversion plan complies with Section 83-31-107(3).
(2) An alternative conversion plan may:
(a) Include the merger of a domestic mutual insurance company into a domestic or foreign stock insurance company;
(b) Provide for issuing stock, cash, or other consideration to members instead of subscription rights;
(c) Provide for the formation of a mutual holding company under Section 83-31-145 et seq.; or
(d) Set forth another plan containing any other provisions approved by the commissioner.
(3) The commissioner may retain, at the mutual insurance company's expense, a qualified expert or experts, including but not limited to appraisers, actuaries, accountants and attorneys, not otherwise a part of the commissioner's staff to assist in reviewing whether the alternative conversion plan may be approved by the commissioner.
Sources: Laws, 1998, ch. 576, § 13, eff from and after July 1, 1998.