DE HB453

Creates new Chapter 49A in Delaware's Insurance Code establishing a comprehensive framework for mutual insurance companies to convert to stock insurers, modeled after federal regulations governing mutual savings institution conversions

Requires a two-thirds vote by both the governing body and voting members to approve any conversion plan, with eligible members receiving non-transferable subscription rights to purchase 100% of the converted company's capital stock before any public offering

Mandates establishment of a "closed block" for participating life insurance policies to ensure continued dividend rights and adequate asset allocation for existing policyholders after conversion

Limits directors and officers from acquiring more than 25-35% of shares (depending on company asset size) and prohibits them from selling purchased stock within one year of conversion

Allows alternative conversion structures including formation of mutual holding companies, mergers with stock insurers, or distribution of stock/cash/credits to policyholders with Commissioner approval