SB 0729 Allows Creation of Mutual Insurance Holding Companies
LR Number:S2853.01I Fiscal Note:2853-01
Committee:Insurance and Housing
Last Action:02/08/96 - Bill Combined w/SCS SBs 597 & 729
Title:SCS SBs 597 & 729
Effective Date:August 28, 1996
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Current Bill Summary

SB 729 - This act revises the law pertaining to all mutual insurance holding companies.

FORMATION - A mutual insurance company can reorganize to become a mutual 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 unless it is not fair and equitable to the policyholders.

STOCK SHARES - The mutual holding company shall own a majority of the shares of the stock of the reorganized insurance 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 agreements 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. In such an action, the assets of the holding company shall be available to satisfy claims against the subsidiary.

This act is similar to SB 597.