HB2355 Summary

• Allows domestic mutual insurers to reorganize into a converted stock insurer with a mutual holding company structure that retains ownership and control of the stock insurer.

• Requires board approval, director approval, and two-thirds affirmative vote from eligible members (policyholders with active policies as of a specified record date) for reorganization to proceed.

• Directors must approve that reorganization is fair and equitable to policyholders; director must find plan protects policyholder rights, maintains adequate capital and surplus, and does not jeopardize financial stability.

• Members of the mutual holding company receive one vote per person regardless of number of policies held and cannot transfer membership interests; members cannot be assessed and are not personally liable for company debts.

• Permits concurrent reorganization of multiple domestic or foreign mutual insurers into a single mutual holding company and allows foreign mutual insurers to reorganize into existing domestic mutual holding companies.