CHAPTER 8. DISTRIBUTION OF CONSIDERATION TO MEMBERS

IC 27-15-8
    Chapter 8. Distribution of Consideration to Members

IC 27-15-8-1
Forms of consideration
    Sec. 1. The consideration to be distributed to the eligible membersshall be:
        (1) cash;
        (2) stock or other securities of the former mutual or of theparent company;
        (3) additional paid up insurance or annuity benefits;
        (4) any combination of the forms of consideration listed in thissection; or
        (5) other forms of consideration described in the plan ofconversion and approved by the commissioner.
As added by P.L.94-1999, SEC.3.

IC 27-15-8-2
Factors in determination of forms and amount
    Sec. 2. The amount and the form or forms of consideration to bedistributed to a class, category, or group of eligible members maydiffer from the amount and form or forms of consideration to bedistributed to another class, category, or group of eligible members.The choice of the amount and form or forms of consideration to bedistributed to a class or category of eligible members may take intoaccount such factors as the type of policies with respect to which theconsideration is being distributed, the country or state of residenceor tax status of the eligible members, the length of time the eligiblemembers have been members of the converting mutual, or otherappropriate factors or circumstances described in the plan ofconversion.
As added by P.L.94-1999, SEC.3.

IC 27-15-8-3
Delay in distribution; time limitation
    Sec. 3. Distribution of all or part of the consideration to some orall of the eligible members may be delayed, or restrictions on sale ortransfer of any stock or other securities to be distributed to eligiblemembers may be required, for a reasonable period of time followingthe effective date of the conversion. However, the period of time maynot exceed six (6) months except as permitted under IC 27-15-12.
As added by P.L.94-1999, SEC.3.

IC 27-15-8-4
Distribution of initial stock
    Sec. 4. (a) A converting mutual using IC 27-15-2-2 or aconverting mutual using a simple plan of conversion underIC 27-15-2-3 may satisfy the requirement to distribute the fair valueof the converting company to the eligible members by providing forthe distribution to the eligible members of all of the initial stock

without the payment by or to the eligible members of any additionalconsideration.
    (b) For purposes of this section, all of the initial issue of the onlyclass of voting common stock of the former mutual or a parentcompany shall be considered distributed to the eligible memberseven if the plan of conversion or the application for approvalprovides for:
        (1) the offer or sale, promptly following the effective date of theplan of conversion, to the public or to other persons ofadditional shares of the same class of voting common stock ofthe former mutual or a parent company at a price not less thanthe fair market value of that stock, with the proposed terms ofthe transaction disclosed to the commissioner in the applicationfor approval;
        (2) the distribution to or for the benefit of certain classes,categories, or groups of eligible members of cash, additionalpaid up insurance or annuity benefits, or other consideration inlieu of initial stock of the former mutual or a parent company,if:
            (A) other consideration is required or appropriate as a resultof tax considerations, the country or state of residence of theeligible members, the nominal value of the stock that thoseeligible members otherwise would be entitled to receive, orother factors or circumstances approved by thecommissioner;
            (B) the value of the other consideration to be distributed tothose eligible members is substantially equal, as of theeffective date of the conversion, to the value of the stockthose eligible members otherwise would be entitled toreceive;
            (C) the eligible members who receive any considerationother than stock constitute not more than ten percent (10%)of the total number of eligible members; and
            (D) the classes, categories, or groups of those eligiblemembers, and the consideration they are to receive in lieu ofstock, are described in the plan of conversion, with alladditional material terms and conditions disclosed in theapplication for approval; or
        (3) a delayed distribution of consideration that is approvedunder section 3 of this chapter or IC 27-15-12.
As added by P.L.94-1999, SEC.3.