Michigan Compiled Laws 218-1956-59 Chapter 59 Conversion Of Domestic Mutual Insurer To Domestic Stock Insurer (500.5901...500.5927)

• Section 500.5901 Definitions.
  As used in this chapter: (a) “Converted stock company” means a Michigan domiciled stock insurance company that converted from a Michigan domiciled mutual company...
• Section 500.5903 Conversion Plan; Vote To Amend Or Withdraw; Submission Of Documents To Commissioner; Time Period For Approval Or Disapproval; Conditions; Review By Qualified Expert; Notice Of Meeting; Vote; Adoption; Filing Certain Documents; Confidentiality.
  (1) A mutual company seeking to convert to a stock company shall adopt, by the affirmative vote of not less than 2/3 of its...
• Section 500.5904 Plan Of Conversion; Prohibited Conduct.
  Prior to the completion of a plan of conversion filed by a mutual company with the commissioner, a person shall not knowingly acquire, make...
• Section 500.5905 Conversion Plan; Contents; Provisions Applicable To Subscription Rights.
  (1) The following provisions shall be included in the plan: (a) The reasons for the proposed conversion. (b) The effect of the conversion on...
• Section 500.5907 Conversion Plan; Provisions Applicable To Operation As Closed Block Of Business.
  (1) The plan shall provide that a mutual life insurance company's participating life policies in force on the effective date of the conversion shall...
• Section 500.5909 Acquisition Of Capital Stock Of Converted Stock Company Or Stock Of Participating Corporation; Limitations; Prohibitions.
  (1) The plan shall provide that any person or group of persons acting in concert shall not acquire, through public offering or subscription rights,...
• Section 500.5911 Receipt Of Subscription Rights By Directors And Officers Of Mutual Company.
  (1) The plan may provide that the directors and officers of the mutual company shall receive, without payment, subscription rights to purchase capital stock...
• Section 500.5913 Allocation Of Subscription Rights To Employee Benefit Plan.
  The plan may allocate to a tax-qualified employee benefit plan subscription rights to purchase up to 10% of the capital stock of the converted...
• Section 500.5915 Adoption Of Plan Not Relying On Issuance Of Subscription Rights; Alternative Plan; Retaining Qualified Expert; “eligible Member” And “u. S. Branch” Defined.
  (1) The board of directors may adopt a plan of conversion that does not rely in whole or in part upon issuing subscription rights...
• Section 500.5917 Effectiveness Of Plan; Conditions.
  A plan is effective when the commissioner has approved the plan, the eligible members have approved the plan, and the revised articles of incorporation...
• Section 500.5919 Notice Of Adoption Of Conversion Plan; Right Of Member To Rescind Or Cancel Policy.
  (1) All members whose policies become effective after the proposed plan has been adopted by the board of directors and before the effective date...
• Section 500.5921 Conversion Plan; Continuation Of Corporate Existence; Transfer Of Rights, Franchises, And Interests; Assumption Of Obligations And Liabilities; Service And Election Of Directors And Officers.
  (1) Upon converting a mutual company to a converted stock company under this chapter, the corporate existence of the mutual company is continued in...
• Section 500.5923 Payment Of Fee, Commission, Or Consideration To Director, Officer, Agent, Or Employee; Costs And Expenses.
  (1) A director, officer, agent, or employee of the mutual company or any other person shall not receive any fee, commission, or other valuable...
• Section 500.5925 Validity Of Actions.
  (1) If the mutual company complies substantially and in good faith with the notice requirements of this chapter, the mutual company's failure to give...
• Section 500.5927 Petition To Waive Notice And Approval Requirements.
  (1) If a mutual insurer becomes insolvent, its board of directors by a majority vote may request in its petition that the commissioner waive...

Last modified: October 10, 2016