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

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

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

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

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

(5)  A means that establishes that the conversionshall not be prejudicial to the subscribers, contract holders, or residents ofthis State;

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

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

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