31A-5-509 - Conversion of a domestic mutual life insurance company into a fraternal. - Utah Statutes

State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-05 > 31a-5-509

31A-5-509. Conversion of a domestic mutual life insurance company into afraternal.
A domestic mutual life insurance company may be converted into a fraternal underChapter 9 in the following manner:
(1) The board of directors of the company shall adopt a plan of conversion stating:
(a) the basis for and the purposes of the proposed action;
(b) the proposed articles and bylaws for the new fraternal; and
(c) the proposed procedure and estimated expenses for implementing the conversion.
(2) The plan shall be filed with the commissioner for approval, together with theinformation under Subsection 31A-9-205(2) required by the commissioner. The commissionershall approve the plan unless he finds, after a hearing, that:
(a) the conversion would be contrary to the law;
(b) the new fraternal would not satisfy the requirements for a certificate of authorityunder Section 31A-5-212 as incorporated by Section 31A-9-210; or
(c) the plan would be contrary to the interests of the policyholders or the public.
(3) After being approved by the commissioner, the plan shall be submitted to thepolicyholders for their approval.
(4) A copy of the plan adopted by the policyholders shall be filed with the commissioner,with a statement indicating the number and percentages of policyholders voting, the method ofvoting, and the number of votes cast in favor of the plan.
(5) If all requirements of the law are met, the commissioner shall issue a certificate ofauthority for the new fraternal. Upon this issuance, the mutual ceases its legal existence and thecorporate existence of the new fraternal begins. The new fraternal is considered as having beenincorporated on the date the converted mutual was incorporated. The new fraternal has all of theassets and is liable for all of the obligations of the converted mutual. The commissioner maygrant a fraternal an adjustment period, not to exceed one year, for compliance with therequirements of Chapter 9. The commissioner's extension shall specify the extent to whichparticular provisions of Chapter 9 do not apply.

Amended by Chapter 204, 1986 General Session

State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-05 > 31a-5-509

31A-5-509. Conversion of a domestic mutual life insurance company into afraternal.
A domestic mutual life insurance company may be converted into a fraternal underChapter 9 in the following manner:
(1) The board of directors of the company shall adopt a plan of conversion stating:
(a) the basis for and the purposes of the proposed action;
(b) the proposed articles and bylaws for the new fraternal; and
(c) the proposed procedure and estimated expenses for implementing the conversion.
(2) The plan shall be filed with the commissioner for approval, together with theinformation under Subsection 31A-9-205(2) required by the commissioner. The commissionershall approve the plan unless he finds, after a hearing, that:
(a) the conversion would be contrary to the law;
(b) the new fraternal would not satisfy the requirements for a certificate of authorityunder Section 31A-5-212 as incorporated by Section 31A-9-210; or
(c) the plan would be contrary to the interests of the policyholders or the public.
(3) After being approved by the commissioner, the plan shall be submitted to thepolicyholders for their approval.
(4) A copy of the plan adopted by the policyholders shall be filed with the commissioner,with a statement indicating the number and percentages of policyholders voting, the method ofvoting, and the number of votes cast in favor of the plan.
(5) If all requirements of the law are met, the commissioner shall issue a certificate ofauthority for the new fraternal. Upon this issuance, the mutual ceases its legal existence and thecorporate existence of the new fraternal begins. The new fraternal is considered as having beenincorporated on the date the converted mutual was incorporated. The new fraternal has all of theassets and is liable for all of the obligations of the converted mutual. The commissioner maygrant a fraternal an adjustment period, not to exceed one year, for compliance with therequirements of Chapter 9. The commissioner's extension shall specify the extent to whichparticular provisions of Chapter 9 do not apply.

Amended by Chapter 204, 1986 General Session

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-05 > 31a-5-509

31A-5-509. Conversion of a domestic mutual life insurance company into afraternal.
A domestic mutual life insurance company may be converted into a fraternal underChapter 9 in the following manner:
(1) The board of directors of the company shall adopt a plan of conversion stating:
(a) the basis for and the purposes of the proposed action;
(b) the proposed articles and bylaws for the new fraternal; and
(c) the proposed procedure and estimated expenses for implementing the conversion.
(2) The plan shall be filed with the commissioner for approval, together with theinformation under Subsection 31A-9-205(2) required by the commissioner. The commissionershall approve the plan unless he finds, after a hearing, that:
(a) the conversion would be contrary to the law;
(b) the new fraternal would not satisfy the requirements for a certificate of authorityunder Section 31A-5-212 as incorporated by Section 31A-9-210; or
(c) the plan would be contrary to the interests of the policyholders or the public.
(3) After being approved by the commissioner, the plan shall be submitted to thepolicyholders for their approval.
(4) A copy of the plan adopted by the policyholders shall be filed with the commissioner,with a statement indicating the number and percentages of policyholders voting, the method ofvoting, and the number of votes cast in favor of the plan.
(5) If all requirements of the law are met, the commissioner shall issue a certificate ofauthority for the new fraternal. Upon this issuance, the mutual ceases its legal existence and thecorporate existence of the new fraternal begins. The new fraternal is considered as having beenincorporated on the date the converted mutual was incorporated. The new fraternal has all of theassets and is liable for all of the obligations of the converted mutual. The commissioner maygrant a fraternal an adjustment period, not to exceed one year, for compliance with therequirements of Chapter 9. The commissioner's extension shall specify the extent to whichparticular provisions of Chapter 9 do not apply.

Amended by Chapter 204, 1986 General Session