§431:4-503  Conversion or reinsurance of
mutual insurer. (a)  No domestic mutual insurer shall be converted,
changed, or reorganized as a stock corporation.



(b)  Such an insurer may be wholly reinsured
in, its assets transferred to, and its liabilities assumed by another mutual or
stock insurer under such terms and conditions as are approved by the
commissioner in advance of such reinsurance.



(c)  The commissioner shall not approve any
such reinsurance agreement which does not determine the amount of and make
adequate provision for paying to policyholders of the mutual insurer,
reasonable compensation for their equities as owners of the insurer, such
compensation to be apportioned to policyholders as identified and in the manner
prescribed in section 431:4-326. [L 1987, c 347, pt of §2]