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. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 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.