SB 834 Establishes a procedure for the voluntary liquidation and dissolution of domestic stock insurance companies
Sponsor: Rupp
LR Number: 4599S.03T Fiscal Note: 4599-03T.ORG
Committee: Small Business, Insurance and Industry
Last Action: 7/9/2010 - Signed by Governor Journal Page: S1962
Title: SCS SB 834 Calendar Position:
Effective Date: August 28, 2010
House Handler: Diehl

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Current Bill Summary


SCS/SB 834 - Under this act, a domestic insurer organized as a stock insurance company may voluntarily dissolve and liquidate provided that the director of the Department of Insurance approves the articles of dissolution prior to the insurer's filing of such articles with the Secretary of State and the insurer files with the secretary of state a copy of the director's approval, certified by the director, along with articles of dissolution.

In determining whether to approve the articles of dissolution, the director shall consider, among other factors, whether:

1) The insurer's annual financial statements filed with the director show no written insurance premiums for 5 years;

2) The insurer has demonstrated that all policyholder claims have been satisfied or have been transferred to another insurer in a transaction approved by the director; and

3) A market conduct examination of the insurer has been completed within the last 5 years.

This provision is contained in the truly agreed to version of SB 583 (2010) and the truly agreed to version of HB 1764 (2010).

STEPHEN WITTE