§ 83-31-117. Conversion plan requirements; effect on existing policies; nonparticipating policies.
(1) Each conversion plan must include the provisions required by Sections 83-31-101 through 83-31-143 and by any rules or regulations adopted by the commissioner.
(2) Each policy in effect on the effective date of the conversion remains in effect under the terms of that policy, except that the following rights, to the extent they existed in the mutual insurance company, are extinguished on the effective date of the conversion:
(a) Any voting rights of policyholders provided under the policy;
(b) Except as provided in subsection (3) of this section, a right to share in the surplus or profits of the mutual insurance company; and
(c) Any assessment provisions provided under the policy.
(3) Except as otherwise provided by Section 83-31-143, the holder of a participating policy in effect on the date of the conversion continues to have a right to receive dividends or distributions as provided by the participating policy.
(4) Except for the mutual insurance company's guaranteed renewable accident and health policies and guaranteed renewable, noncancellable accident and health policies, on the renewal date of a participating policy, the converted stock company may issue the insured a nonparticipating policy as a substitute for the participating policy on such terms and conditions and on such policy forms as shall be approved by the commissioner.
Sources: Laws, 1998, ch. 576, § 9, eff from and after July 1, 1998.
§ 83-31-117. Conversion plan requirements; effect on existing policies; nonparticipating policies.
(1) Each conversion plan must include the provisions required by Sections 83-31-101 through 83-31-143 and by any rules or regulations adopted by the commissioner.
(2) Each policy in effect on the effective date of the conversion remains in effect under the terms of that policy, except that the following rights, to the extent they existed in the mutual insurance company, are extinguished on the effective date of the conversion:
(a) Any voting rights of policyholders provided under the policy;
(b) Except as provided in subsection (3) of this section, a right to share in the surplus or profits of the mutual insurance company; and
(c) Any assessment provisions provided under the policy.
(3) Except as otherwise provided by Section 83-31-143, the holder of a participating policy in effect on the date of the conversion continues to have a right to receive dividends or distributions as provided by the participating policy.
(4) Except for the mutual insurance company's guaranteed renewable accident and health policies and guaranteed renewable, noncancellable accident and health policies, on the renewal date of a participating policy, the converted stock company may issue the insured a nonparticipating policy as a substitute for the participating policy on such terms and conditions and on such policy forms as shall be approved by the commissioner.
Sources: Laws, 1998, ch. 576, § 9, eff from and after July 1, 1998.
§ 83-31-117. Conversion plan requirements; effect on existing policies; nonparticipating policies.
(1) Each conversion plan must include the provisions required by Sections 83-31-101 through 83-31-143 and by any rules or regulations adopted by the commissioner.
(2) Each policy in effect on the effective date of the conversion remains in effect under the terms of that policy, except that the following rights, to the extent they existed in the mutual insurance company, are extinguished on the effective date of the conversion:
(a) Any voting rights of policyholders provided under the policy;
(b) Except as provided in subsection (3) of this section, a right to share in the surplus or profits of the mutual insurance company; and
(c) Any assessment provisions provided under the policy.
(3) Except as otherwise provided by Section 83-31-143, the holder of a participating policy in effect on the date of the conversion continues to have a right to receive dividends or distributions as provided by the participating policy.
(4) Except for the mutual insurance company's guaranteed renewable accident and health policies and guaranteed renewable, noncancellable accident and health policies, on the renewal date of a participating policy, the converted stock company may issue the insured a nonparticipating policy as a substitute for the participating policy on such terms and conditions and on such policy forms as shall be approved by the commissioner.
Sources: Laws, 1998, ch. 576, § 9, eff from and after July 1, 1998.
