31A-7-403. Conversion to a Title 31A, Chapter 5, mutual insurer.
(1) An insurer organized and operating under this chapter may be converted into a mutual insurer under, as provided in this section. Chapter 5, Domestic Stock and Mutual Insurance Corporations
(2) The board shall pass a resolution that the conversion is not contrary to the interests of the policyholders specifying the reasons for and the purposes of the proposed conversion, and the manner in which the conversion is expected to affect policyholders, particularly the policyholders that are members. The board's resolution shall also set forth a plan of conversion which shall include: the articles of incorporation of the new, mutual insurer, including a description of the classes of policyholders who, by virtue of being policyholders, will have an interest in the converted insurer; Chapter 5, Domestic Stock and Mutual Insurance Corporations the bylaws of the new, mutual insurer; Chapter 5, Domestic Stock and Mutual Insurance Corporations a description of any changes in the insurer's mode of operations after conversion to a, mutual insurer; and Chapter 5, Domestic Stock and Mutual Insurance Corporations any other items specified by rule.
(3) The provisions of, apply to the conversion of a, insurer to a, mutual insurance corporation. Chapter 16, Insurance Holding Companies Chapter 7, Nonprofit Health Service Insurance Corporations Chapter 5, Domestic Stock and Mutual Insurance Corporations
(4) The plan of conversion shall be submitted to the commissioner for approval, together with a projection of the planned or anticipated financial condition of the insurer for two years after the conversion.
(5) The commissioner shall hold an adjudicative proceeding concerning the conversion application.
(6) The commissioner shall approve the plan of conversion, unless the commissioner finds that the plan violates the law, is contrary to the interests of policyholders or the public, or would result in an unfair distribution of interest among the insurer's policyholders.
(7) Upon the commissioner approving the conversion under Subsection, the commissioner shall issue a new certificate of authority. (6) The issuance of the certificate is the conversion, and upon issuance of the certificate the, insurer at once becomes a mutual insurance corporation organized under and fully subject to. Chapter 7, Nonprofit Health Service Insurance Corporations Chapter 5, Domestic Stock and Mutual Insurance Corporations The mutual insurer is considered to have been organized at the time the converted, insurer was organized. Chapter 7, Nonprofit Health Service Insurance Corporations Unless otherwise provided in the plan of conversion, the directors, officers, agents, and employees of the, insurer shall continue in like capacity with the mutual insurance corporation. Chapter 7, Nonprofit Health Service Insurance Corporations