Sec. 887.455. COMPLETION AND LEGAL EFFECT OF CONVERSION OR REINSURANCE. (a) An association's conversion or reinsurance is complete when the association has:
(1) complied with all laws regulating the incorporation of a mutual legal reserve insurance company; and
(2) received from the commissioner its charter and certificate of authority to engage in business as a mutual insurance company.
(b) An association that converts or reinsures to a mutual legal reserve insurance company:
(1) is considered by law to have each right, privilege, power, or authority of any other mutual legal reserve company;
(2) is considered by law to be a continuation of the business of the association; and
(3) succeeds to and is invested with:
(A) each right or privilege of the former association that is not inconsistent with Chapter 882;
(B) each franchise or other interest of the former association; and
(C) all property of the former association, including debts due on any account and all choses in action.
(c) On conversion or reinsurance of an association to a mutual legal reserve insurance company, the title to any real estate by deed or otherwise vested in the former association vests in the company, and the title is not in any way impaired because of the conversion or reinsurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
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