NY A03710

Allows domestic mutual property/casualty insurers to reorganize into stock insurers while forming a mutual holding company that must retain at least 51% ownership of the reorganized insurer's voting stock

Requires reorganization plans to be approved by two-thirds of the insurer's board of directors, the Superintendent of Insurance (after public hearing), and two-thirds of eligible member votes cast

Protects policyholders by ensuring the reorganization process itself cannot change premiums or reduce policy benefits, and policyholders become members of the new mutual holding company with voting rights

Mandates that at least two-thirds of directors on the mutual holding company and any intermediate stock holding companies must be outside directors not employed by or holding significant ownership in the companies

Establishes procedures for the mutual holding company to later convert to a full stock corporation, requiring distribution of consideration to members that is fair and equitable as determined by the Superintendent