Enrolled Bill Summary

            Senate Bill 1447 amends the Insurance Code to authorize the conversion of mutual insurance companies, other than life insurance companies, into stock insurance companies and establishes requirements governing the conversion process and the subscription and sale of stock. The act also authorizes an alternative conversion plan that provides for mergers, formation of a mutual holding company, or the issuing of consideration other than stock subscriptions rights. In order to convert, an insurance company must submit a conversion plan to the insurance commissioner for approval, adopt the plan by at least a two-thirds majority vote of policyholders, and adopt amended articles of incorporation. The act establishes a deadline for commissioner approval and allows the commissioner to retain a qualified expert to review the plan. The act sets forth provisions governing holding companies, conversion of insolvent companies, rights of policyholders regarding conversion, notice of conversion, conflict of interest, and the transfer of assets and liabilities to the new entity. Actions taken against a conversion plan must be commenced within 30 days of the plan's effective date.