By Averitt                                            H.B. No. 3326
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the reorganization of a mutual life insurance company.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Amend Article 11.01, Insurance Code by adding a
 1-5     new Subsection (d) to read as follows:
 1-6           (d)  Any mutual life insurance company organized or operating
 1-7     under the provisions of Chapter 11 of this Code may reorganize by
 1-8     forming an insurance holding company based on a mutual plan and
 1-9     continuing the corporate existence of the reorganizing insurance
1-10     company as a stock insurance company.
1-11                 (1)  The commissioner, if satisfied that the
1-12     reorganization is fair and equitable to members, shall approve the
1-13     proposed plan or reorganization.  The Commissioner shall retain
1-14     jurisdiction over a mutual holding company organized pursuant to
1-15     this section to assure that member interests are protected.
1-16                 (2)  A reorganization under this section shall be
1-17     governed by Article 15.22, Section 24 of this Code.
1-18                 (3)  A mutual holding company resulting from the
1-19     reorganization of a domestic mutual insurance company organized
1-20     under this chapter shall be incorporated pursuant to Chapter 11 of
1-21     this code and the Texas Non-Profit Corporation Act (Article
1-22     1396-1.01 et seq., Vernon's Texas Civil Statutes).  The articles of
1-23     incorporation, and any amendments to such articles, of the mutual
 2-1     holding company shall be subject to approval of the commissioner in
 2-2     the same manner as those of a mutual insurance company.
 2-3                 (4)  A membership interest in a mutual holding company
 2-4     shall not constitute a security as defined in Section 4, The
 2-5     Securities Act (Article 581-4, Vernon's Texas Civil Statutes).
 2-6           SECTION 2.  This Act shall be effective on September 1, 2001.