Sec. 3. (a) The board of directors of the converting mutual may adopt a simple plan of conversion under this section. The simple plan of conversion must include the following:

(1) The distribution to the eligible members, upon the extinguishing of their membership interests, of all of the initial issue of the voting common stock of the former mutual or any parent company. The initial issue of the voting common stock may include only one (1) class of stock, and may not include more than one (1) series of stock.

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Terms Used In Indiana Code 27-15-2-3

  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
(2) Describe the manner in which the proposed conversion will occur and the insurance and any other companies that will result from or be directly affected by the conversion, including the former mutual and any parent company.

(3) Provide that the membership interests in the converting mutual will be extinguished as of the effective date of the conversion.

(4) Provide for the registration of that distribution of stock under section 5 of the federal Securities Act of 1933 (15 U.S.C. § 77e).

(5) Specify each separate class, category, or group of eligible members, and describe and explain any differences in the amount of stock to be distributed to or among the eligible members of each separate class, category, or group of eligible members.

(6) Require and describe the method or formula for the fair and equitable allocation of the stock among the eligible members.

(7) Provide for the determination and preservation of the reasonable dividend expectations of eligible members and other policyholders with policies that provide for the distribution of policy dividends, through the establishment of a closed block or other method acceptable to the commissioner.

     (b) The plan may include other provisions:

(1) that the converting mutual determines to be necessary; and

(2) consistent with this title.

As added by P.L.94-1999, SEC.3. Amended by P.L.124-2018, SEC.104.

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