HB 5053 - Strengthening Connecticut's Insurance Industry Competitiveness

• Enables domestic mutual insurers to reorganize into stock insurers owned by mutual holding companies, allowing policyholders to become members of the holding company while maintaining equity rights.

• Permits mutual holding companies to convert to stock corporations with policyholders receiving fair consideration (stock, cash, or other forms) equal to the company's capital and surplus, subject to commissioner approval.

• Establishes procedures for alien insurers to operate United States branches in Connecticut with trusteed assets as security, including annual reporting requirements and domestication options to convert branches into domestic stock insurers.

• Imposes restrictions on officer and director stock ownership following initial public offerings (5% limit for two years, then 18% limit) and requires stock purchase rights for eligible policyholders in public offerings unless outside directors determine otherwise.

• Creates limitations periods for legal challenges to reorganization and conversion plans (30 days to one year depending on action type) and requires adequate security for actions deemed without merit.