Title 18 — Insurance Code
83 chapters · 1,008 sections in this title.
18 Del. C. § 4970. Finding; purpose.
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§ 4970. Finding; purpose. (a) It is determined and declared as a matter of legislative finding that policyholders of a mutual insurer have contractual rights to insurance coverage and certain membership rights consisting principally of the right to elect directors of a mutual ins…
18 Del. C. § 4971. Short title of chapter.
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§ 4971. Short title of chapter. This chapter shall be known and may be cited as the “Delaware Insurance Company Mutual-to-Stock Conversion Act.”77 Del. Laws, c. 466, § 2;
18 Del. C. § 4972. Definitions.
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§ 4972. Definitions. As used in this chapter, the following words and phrases shall have the meanings as ascribed in this section: (1) “Capital stock” means common or preferred stock or any hybrid security or other equity security issued by a converted stock insurer or other comp…
18 Del. C. § 4973. Adoption of plan of conversion.
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§ 4973. Adoption of plan of conversion. (a) No plan of conversion shall become effective unless the mutual company seeking to convert to a stock company shall have adopted, by the affirmative vote of not less than 2/3 of its governing body and otherwise in accordance with law, a …
18 Del. C. § 4974. Redomestication and conversion.
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§ 4974. Redomestication and conversion. (a) A foreign mutual insurer or foreign mutual holding company that has filed an application for redomestication may file an application for conversion under this chapter promptly after completion of the redomestication or upon such earlier…
18 Del. C. § 4975. Required provisions of plan of conversion.
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§ 4975. Required provisions of plan of conversion. (a) The following provisions shall be included in the plan: (1) The reasons for proposed conversion. (2) The effect of conversion on existing policies, including all of the following: a. A provision that all policies in force on …
18 Del. C. § 4976. Closed block of business for participating life policies.
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§ 4976. Closed block of business for participating life policies. (a) A plan that is adopted by a mutual company that is a life insurance company which issues participating life policies shall provide that participating life policies in force on the effective date of the conversi…
18 Del. C. § 4977. Optional provisions of plan of conversion.
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§ 4977. Optional provisions of plan of conversion. (a) The plan may provide that the directors, officers, and employees of the mutual company shall receive, without payment, nontransferable subscription rights to purchase capital stock of the converted stock company or the stock …
18 Del. C. § 4978. Alternative plan of conversion.
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§ 4978. Alternative plan of conversion. (a) The governing body may adopt a plan of conversion that does not rely in whole or in part upon issuing nontransferable subscription rights to members to purchase stock of the converted stock company if the Commissioner finds that the pla…
18 Del. C. § 4979. Effective date of plan.
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§ 4979. Effective date of plan. A plan is effective when the Commissioner has approved the plan, the voting members have approved the plan and adopted the certificate of incorporation of the converted stock company, and the certificate of incorporation is filed in the office of t…
18 Del. C. § 4980. Rights of members whose policies are issued after adoption of plan and before effective date.
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§ 4980. Rights of members whose policies are issued after adoption of plan and before effective date. (a) All members whose policies are issued after the proposed plan has been adopted by the governing body and before the effective date of the plan shall be sent a written notice …
18 Del. C. § 4981. Corporate existence.
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§ 4981. Corporate existence. (a) On the effective date of the conversion, the corporate existence of the mutual company continues in the converted stock company. On the effective date of the conversion, all the assets, rights, franchises, and interests of the mutual company or th…
18 Del. C. § 4982. Conflict of interest.
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§ 4982. Conflict of interest. (a) A director, officer, agent, or employee of the mutual company shall not receive any fee, commission, or other valuable consideration, other than such person’s usual regular salary or compensation, for aiding, promoting, or assisting in a conversi…
18 Del. C. § 4983. Failure to give notice.
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§ 4983. Failure to give notice. If the mutual company complies substantially and in good faith with the notice requirements of this chapter, the mutual company’s failure to send a member the required notice does not impair the validity of any action taken under this chapter.77 De…
18 Del. C. § 4984. Limitation on actions.
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§ 4984. Limitation on actions. Any action challenging the validity of or arising out of acts taken or proposed to be taken under this chapter shall be commenced no later than the latter of: (1) Sixty days after the approval of the plan by the Commissioner; or (2) Thirty days afte…
18 Del. C. § 4985. Mutual company insolvent or in hazardous financial condition.
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§ 4985. Mutual company insolvent or in hazardous financial condition. (a) If a mutual company seeking to convert is insolvent or is in hazardous financial condition according to information supplied in its most recent annual or quarterly statement filed with the Department or as …
18 Del. C. § 4986. Rules and regulations.
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§ 4986. Rules and regulations. The Commissioner may promulgate rules and regulations to administer and enforce this chapter.77 Del. Laws, c. 466, § 2;
18 Del. C. § 4987. Laws applicable to converted stock company.
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§ 4987. Laws applicable to converted stock company. (a) No mutual company shall be permitted to convert under this chapter if, as a direct result of the conversion, any person or any affiliate thereof acquires control of the converted stock company, unless that person and such pe…
18 Del. C. § 4988. Commencement of business as a stock insurer.
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§ 4988. Commencement of business as a stock insurer. No mutual company shall have the power to engage in the business of insurance as a stock company until it complies with all provisions of this chapter.77 Del. Laws, c. 466, § 2;
18 Del. C. § 4989. Amendment of policies.
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§ 4989. Amendment of policies. A mutual company, by endorsement or rider approved by the Commissioner and sent to the policyholder, may simultaneously with or at any time after the adoption of a plan of conversion amend any outstanding insurance policy for the purpose of extingui…
18 Del. C. § 4990. Prohibition on acquisitions of control.
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§ 4990. Prohibition on acquisitions of control. Except as otherwise specifically provided in § 4975 of this title, from the date a plan of conversion is adopted by the governing body of a mutual company until 3 years after the effective date of the plan of conversion, no person s…
18 Del. C. § 4991. Applicability to existing mutual insurers.
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§ 4991. Applicability to existing mutual insurers. (a) Except as provided in subsection (b) of this section, this chapter shall apply to all mutual insurers. (b) Section 4933 of this title as in effect prior to October 17, 2010, is hereby repealed, except as set forth in the next…