|SB 0597||Allows Creation of Mutual Insurance Holding Companies|
|LR Number:||S1873.10P||Fiscal Note:||1873-10|
|Committee:||Insurance and Housing|
|Last Action:||04/30/96 - Hearing Conducted H Insurance Committee|
|Title:||SCS/SBs 597 & 729|
|Effective Date:||August 28, 1996|
SCS/SBs 597 & 729 - This act revises the law pertaining to mutual insurance holding companies. It contains separate sections for life insurance companies organized under Chapter 376, RSMo, and insurance companies organized under Chapter 379, RSMo.
FORMATION - A mutual life insurance company can become a mutual life insurance holding company. The mutual shall file an application and plan with the Director of Insurance, who shall conduct an adequate review and may conduct a hearing. The plan shall be approved by the Director if it is fair and equitable to the policyholders. The reorganizational plan must be approved by a majority of the policyholders voting at a special meeting called for that purpose; a group of 100 policyholders may pay for the dissemination of information to all policyholders on the issue.
STOCK SHARES - The mutual holding company shall own a majority of the shares of the stock of the reorganized life insurance company. Any subsidiaries of the life insurance company may remain such or become subsidiaries of the mutual holding company. The policyholders' membership interests shall be transferred to the holding company. Members are not liable for the obligations of the company, and they may not be assessed for liabilities.
ARTICLES OF INCORPORATION - The articles of incorporation and any amendments shall be subject to approval by the Director and the Attorney General.
POWERS - Mutual holding companies shall have the same powers granted to regular holding companies under Chapter 382, RSMo. No holding company shall engage in the insurance business, but it may enter into an affiliation or merger agreement with a mutual life insurance company.
LIQUIDATION - A mutual holding company shall be party to any proceeding under the Insurers Supervision, Rehabilitation and Liquidation Act involving a subsidiary of the holding company or a subsidiary of a stock holding company created under this act. In such an action, the assets of the holding company shall be available to satisfy claims against the subsidiary.
MUTUALS UNDER CHAPTER 379, RSMo - Any mutual insurance
company formaed under Chapter 379, RSMo (property, liability,
fidelity & surety, accident & health, use & occupancy) may form a
mutual insurance holding company in the same manner as provided
above. This was in SB 729.