N.D. Cent. Code § 26.1-12.2-05

Current through 2023 Legislative Sessions

Section 26.1-12.2-05 - Alternative plan of conversion

The governing body of the converting mutual company 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 converting stock company if the commissioner finds the plan of conversion does not prejudice the interests of the members, is fair and equitable, and is not inconsistent with the purpose and intent of this chapter. Subject to a finding of the commissioner that an alternative plan of conversion is fair and equitable and is not inconsistent with the purpose and intent of this chapter, an alternative plan of conversion may:

1. Include the merger of a domestic mutual insurance company into a domestic or foreign stock insurance company.

2. Provide for the issuance of transferable or redeemable subscription rights.

3. Provide for issuing stock, cash, policyholder credits, or other consideration, or any combination of the foregoing, to policyholders instead of subscription rights.

4. Set forth another plan of conversion containing any other provisions approved by the commissioner.

N.D.C.C. § 26.1-12.2-05

Added by S.L. 2015, ch. 209 (HB 1313),§ 2, eff. 7/1/2015.