Conversion of assessable to nonassessable and nonassessable to assessable mutuals

611.77 Conversion of assessable to nonassessable and nonassessable to assessable mutuals. (1) ASSESS- right to vote on the sale, lease, exchange or other disposition of all ABLE TO NONASSESSABLE. Whenever an assessable mutual accuor substantially all of a mutual’s property and assets, the sale, mulates enough surplus to satisfy the financial requirements for lease, exchange or other disposition may be authorized by the the operation of a nonassessable mutual under like conditions, it vote of the majority of the directors in office. may apply for a certificate of authority authorizing it to sell (2) REPORT TO COMMISSIONER. Any action by which an innonassessable policies. The commissioner shall issue a certifi- surance corporation proposes to transfer to another person or to cate of authority designating it a nonassessable mutual if he or reinsure any part of its insurance business, other than in the norshe finds that the applicant satisfies the requirements of the law mal and usual course of business, or to sell, lease, exchange, and that the issuance of nonassessable policies will not endanger mortgage, pledge or otherwise dispose of or encumber more than the interests of its insureds or the public. Policies issued there- one-fourth of its assets, shall be reported to the commissioner not after shall be nonassessable; existing policies shall continue in ef- less than 30 days in advance of the proposed effective date. The fect and shall also become nonassessable. commissioner may defer the effective date for an additional pe(2) NONASSESSABLE TO ASSESSABLE. A nonassessable mu- riod not exceeding 30 days by written notice to the corporation tual may apply to the commissioner for a certificate of authority before expiration of the initial 30-day period. designating it an assessable mutual. The commissioner shall is(3) DISAPPROVAL. The commissioner may, within the 30-day sue the certificate if the law permits such a corporation to issue assessable policies and if he or she finds that the conversion will period or its extension, prohibit the proposed action if it is connot endanger the interests of present or future insureds or of the trary to law or to the interests of insureds or the public or if it will public. All policies issued after conversion shall be assessable, make possible the circumvention of any of the requirements of ss. and all policies in effect on the date of conversion shall be assess- 611.71 to 611.77. History: 1971 c. 260; 1979 c. 102; 1989 a. 303; 1997 a. 79; 1999 a. 30. able except to the extent that there is a contract right then existing not to be assessed.