By:  Wentworth                                        S.B. No. 1598
         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.
 1-4           SECTION 1.  Article 11.01, Insurance Code, is amended by
 1-5     adding 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 mutual life
1-10     insurance company as a stock insurance company subject to the
1-11     following conditions:
1-12                 (1)  The Commissioner of Insurance, if satisfied that
1-13     the reorganization is fair and equitable to the policy holders of
1-14     such company, may approve the proposed plan of reorganization and
1-15     shall retain jurisdiction over such company;
1-16                 (2)  Such reorganization shall be governed by Article
1-17     15.22 of this Code;
1-18                 (3)  A mutual holding company that results from a
1-19     reorganization of a domestic mutual insurance company organized
1-20     under Chapter 11 of this Code shall be incorporated under the
1-21     provisions of this Code and the Texas Non-Profit Corporation Act.
1-22     The articles of incorporation and any amendments to such articles
1-23     of the mutual holding company are subject to approval of the
 2-1     Commissioner of Insurance;
 2-2                 (4)  A membership interest in a mutual holding company
 2-3     may not constitute a security under Section 4, The Securities Act.
 2-4           SECTION 2.  This Act takes effect September 1, 2001.