California Insurance Code ARTICLE 17 - Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers

• Section 1560.
  This article shall apply only to domestic reciprocal insurers organized after 1974 to provide medical malpractice insurance.(Added by Stats. 1998, Ch. 421, Sec. 2. Effective...
• Section 1560.01.
  By following the procedure specified in this article, any domestic reciprocal insurer described in Section 1560 may be converted into an incorporated stock insurer. To...
• Section 1560.02.
  The definitions in this section apply to the following terms when used in this article:(a) “Adoption date” means the date the governing body adopts the plan...
• Section 1560.03.
  A plan of conversion adopted by a domestic reciprocal insurer for the establishment of a reciprocal holding company shall provide that the domestic reciprocal insurer...
• Section 1560.05.
  (a) The commissioner shall examine the plan submitted pursuant to Section 1560.03. As a part of the examination the commissioner shall order a public hearing of...
• Section 1560.06.
  The meeting of subscribers prescribed by subdivision (c) of Section 1560.03 shall be called by the governing board, the chairperson of the board, or the...
• Section 1560.07.
  Nothing in this article shall be deemed to prohibit the inclusion in the plan of conversion of provisions under which the insurer’s officers, directors, employees,...
• Section 1560.08.
  No director, officer, agent, or employee of the domestic reciprocal insurer shall receive any fee, commission, or other valuable consideration whatsoever, other than regular salary...
• Section 1560.09.
  At any time before that plan of conversion becomes effective, the domestic reciprocal company may, by resolution of at least two-thirds of the governing board,...
• Section 1560.10.
  Upon consent by the commissioner to the plan of conversion of a domestic reciprocal insurer and filing of the plan of conversion in accordance with...
• Section 1560.11.
  (a) Upon the effective date of a plan of conversion in accordance with Section 1560.10, the domestic reciprocal insurer immediately becomes a stock corporation, the interests...
• Section 1560.12.
  (a) Prior to, and for a period of five years following, the effective date of the plan of conversion, no person or group of persons acting...
• Section 1560.13.
  Unless otherwise provided in the plan of conversion, the governing body and officers of the domestic reciprocal insurer shall serve as directors and officers of...
• Section 1560.14.
  (a) Notwithstanding any other provision of law and except as otherwise provided in subdivision (b), actions concerning any plan of conversion, proposed plan of conversion, plan...
• Section 1560.15.
  The offer or sale of securities issued pursuant to the plan of conversion developed and approved in accordance with the provisions of this article, shall...
• Section 1560.16.
  The commissioner shall have the authority from time to time, to make, amend, and rescind any rules and regulations necessary to carry out the provisions...
• Section 1560.17.
  Upon completion of the act of conversion and issuance of the certificate of authority under Section 1560.10, the Secretary of State shall accept for filing...
• Section 1560.18.
  (a) The articles of incorporation of a converted insurer that have been adopted pursuant to a plan of conversion and filed with the Secretary of State...
• Section 1560.19.
  If the name of a domestic reciprocal insurer converting to a stock insurer pursuant to this article includes the word “reciprocal,” the new stock insurer...

Last modified: October 22, 2018