Section 917-A - Alternative plan of conversionThe board of directors 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 converted stock company if the commissioner finds that the plan does not prejudice the interests of the members, is fair and equitable and is not inconsistent with the purpose and intent of this act. An alternative plan may:
(1) Include the merger of a domestic mutual insurer into a domestic or foreign stock insurer.(2) Provide for issuing stock, cash or other consideration to policyholders instead of subscription rights.(3) Provide for partial conversion of the mutual company and formation of a mutual holding company.(4) Set forth another plan containing any other provisions approved by the commissioner. The department may approve a partial conversion and formation of a mutual holding company provided the mutual holding company is not insolvent or in hazardous financial condition according to information supplied in its most recent annual or quarterly statement filed with the department or as determined by a financial examination performed by the department pursuant to Article IX of the act of May 17, 1921 (P.L. 789, No. 285), known as "The Insurance Department Act of 1921." The commissioner may retain, at the mutual company's expense, any qualified expert not otherwise a part of the commissioner's staff to assist in reviewing whether the plan may be approved by the commissioner.1921, May 17, P.L. 682, No. 284, § 807-A, added 1995, Dec. 21, P.L. 714, No. 79, § 14, effective in 60 days. Amended 1996, Dec. 18, P.L. 1003, No. 154, § 5, effective in 60 days.