Michigan Laws 500.6007 – Reorganization plan; contents
Current as of: 2023 | Check for updates
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A plan of reorganization shall include all of the following:
(a) The reasons for the proposed reorganization.
Terms Used In Michigan Laws 500.6007
- Commissioner: means the director. See Michigan Laws 500.102
- Converted company: means a Michigan domiciled stock insurance company that results from the reorganization of a mutual company under this chapter. See Michigan Laws 500.6001
- Intermediate holding company: means a business corporation subsidiary of a mutual holding company domiciled in this state, any other state, or the District of Columbia that is authorized to issue 1 or more classes of capital stock, the corporate purposes of which include holding directly or indirectly the voting stock of a converted company. See Michigan Laws 500.6001
- Mutual company: means a domestic mutual insurance company organized under chapter 50, 54, or 58. See Michigan Laws 500.6001
- plan: means a plan adopted pursuant to this chapter by the board of directors of a mutual company for the reorganization of the mutual company simultaneously into both a mutual holding company and a converted company existing as a direct or indirect stock subsidiary of the mutual holding company. See Michigan Laws 500.6001
- Policy: means a group or individual insurance policy or contract issued by a mutual company. See Michigan Laws 500.6001
(b) The effect of the reorganization on existing policies including all of the following:
(i) A provision that all policies in force on the effective date of the reorganization continue to remain in force under the terms of those policies, except that any voting or other membership rights of the policyholders provided for under the policies or under this act, and any contingent liability policy provisions permitted by this act are extinguished on the effective date of the reorganization.
(ii) A provision that holders of participating policies in effect on the date of reorganization continue to have the right to receive dividends as provided in the participating policies, if any.
(iii) A provision that, except for a mutual company‘s life policies, guaranteed renewable accident and health policies, and noncancelable accident and health policies, the converted company may issue the insured a nonparticipating policy as a substitute for the participating policy upon the renewal date of a participating policy.
(c) The detailed plans for granting membership interests to current and future policyholders of the converted company.
(d) Information sufficient to demonstrate that the financial condition of the converted company will not be diminished by the plan.
(e) A description of any current plans or any proposal approved by the mutual company board to issue shares of an intermediate holding company or shares of the converted company to the public or to other persons who are not direct or indirect subsidiaries of the mutual holding company.
(f) The identity of the proposed officers and directors of the mutual holding company and each intermediate holding company, if any, together with other biographical information as the commissioner requests.
(g) Other information as the commissioner requests or prescribes by rule.