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The DC Code: § 31-752 Formation of a mutual insurance holding company from a reciprocal insurance company.

Index31 Insurance and Securities. (Refs & Annos)
a
Upon approval of the Commissioner, a domestic reciprocal insurance company may form a mutual insurance holding company that directly or indirectly owns the insurance company, based upon a conversion plan. The reorganized insurance company shall continue, without interruption, its existence as a stock insurance company subsidiary of the mutual insurance holding company or as a stock insurance company subsidiary to an intermediate holding company which is a subsidiary of the mutual insurance holding company.
b
The Commissioner, after a public hearing as provided in § 31-703(g)(1), if satisfied that the interests of the policyholders are properly protected and that the conversion plan is fair and equitable to the policyholders, shall approve the proposed conversion plan and may require as a condition of approval such modifications of the proposed conversion plan as the Commissioner finds necessary for the protection of the policyholders' interests. The Commissioner may retain consultants as provided in § 31-703(g)(3). A conversion pursuant to this section shall be subject to § 31-703(a), (b), and (c).   The Commissioner shall retain jurisdiction over a mutual insurance holding company organized pursuant to this section to assure that policyholder interests are protected.
c
All of the initial shares of the capital stock of the reorganized insurance company shall be issued to the mutual insurance holding company.   The membership interests of the policyholders of the reorganized insurance company shall become membership interests in the mutual insurance holding company.
d
Policyholders of the reorganized insurance company shall be members of the mutual insurance holding company in accordance with the articles of incorporation and bylaws of the mutual insurance holding company. The mutual insurance holding company shall at all times own a majority of the voting shares of the capital stock of the reorganized insurance company.

Historical and Statutory

Prior Codifications 1981 Ed., § 35-3742. Emergency Act Amendments See Historical and Statutory Notes following § 31-751. Legislative History of Laws For legislative history of D.C. Law 12-112, see Historical and Statutory Notes following § 31-751. DC CODE § 31-752 Current through December 11, 2012

Credits

(May 12, 1998, D.C. Law 12-112, § 3, 45 DCR 1792.)