Enrolled Bill Summary
Legislative Session: 79(R)Senate Bill 449 amends the Insurance Code to allow a mutual life insurance company that is regulated by the state to convert to a mutual insurance holding company and continue its corporate existence as a stock life insurance company. The bill makes such a conversion contingent on a determination by the commissioner of insurance that the conversion is fair and equitable to the converting company's policyholders and on approval of the commissioner. The bill establishes that the commissioner retains jurisdiction over the converting company and sets certain incorporation requirements for the mutual insurance holding company that results from the conversion. The bill provides exemptions from certain registration and licensing requirements of the Texas Securities Act for securities sold, issued, or offered in the course of a conversion and for officers, directors, and employees who participate in a conversion, and prohibits a person from receiving compensation other than the usual salary or compensation for services performed under such an exemption.