[§432C-2]  Application for conversion. 
(a)  A nonprofit entity shall file an application with the commissioner at
least six months prior to a proposed conversion.  The application shall include
a report of the activities of the nonprofit entity and a plan for the
conversion including the following:



(1)  A board resolution indicating that a majority of
the board of directors has approved the plan for conversion;



(2)  Copies of the original and amended articles of
incorporation, if any;



(3)  The nature of the public benefit or charitable
activities undertaken by the nonprofit entity;



(4)  Expenditures incurred by the nonprofit entity on
the public benefit or charitable activities;



(5)  A means that establishes that the conversion
shall not be prejudicial to the subscribers, contract holders, or residents of
this State;



(6)  A comparative premium rate analysis of the
nonprofit entity's major plans and products, with the analysis comparing actual
premium rates for the past three years prior to the proposed conversion and
projected premium rates for three years following the proposed conversion.  The
analysis shall address the projected impact, if any, of the proposed conversion
upon the nonprofit entity's future underwriting profit, investment income, and
loss and claim reserves, including the effect, if any, of adverse market or
risk selection upon the reserves; and



(7)  A valuation of all assets held by the nonprofit
entity.



(b)  The commissioner may request any
additional information that the commissioner deems necessary to carry out this
chapter. [L 1998, c 260, pt of §2]