SRC-MWN S.B. 1598 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1598
By: Wentworth
Business & Commerce
4/2/2001
As Filed


DIGEST AND PURPOSE 

Currently, a mutual life insurance company is authorized to convert to a
stock company under the provisions of Article 11.01, Section 1(c), Texas
Insurance Code. As proposed, S.B. 1598 adds additional language that allows
a mutual life insurance company to reorganize through the use of a mutual
holding company.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 11.01, Insurance Code, by adding Subsection (d),
to authorize any mutual life insurance company organized or operating under
the provisions of Chapter 11 of this code to reorganize by forming an
insurance holding company based on a mutual plan and continuing the
corporate existence of the reorganizing mutual life insurance company as a
stock insurance company subject to certain conditions. 

SECTION 2. Effective date: September 1, 2001.