17:35-14.2 - Reserves; policies in force at date of conversion; assessment rights cancelled - New Jersey Statutes

17:35-14.2.  Reserves;  policies in force at date of conversion; assessment  rights cancelled    Upon fulfillment of the requirements prescribed in section one hereof:

    (a) The mutual life insurance company shall be subject to the same requirements as to reserves as any other mutual life insurance company transacting the same kind or kinds of insurance and shall be relieved from the requirement to hold reserves or funds determined in any other manner, and specifically shall be relieved from the requirement to hold any reserves or funds held by the assessment life insurance company in accordance with Revised Statutes, Title 17, chapter thirty-five and chapter forty-five, as amended and supplemented.

    (b) All persons whose life or health is insured under the terms of certificates, policies and contracts, issued or assumed by the assessment life insurance company, which are in force at the date of conversion or are thereafter duly reinstated, shall be deemed to be members and policy holders of  the mutual life insurance company, without change in the terms of their several  contracts except as prescribed herein, or in the plan of conversion.

    (c) All rights of assessment, or reduction in benefits in lieu of assessment, prescribed in the certificate of incorporation or bylaws of such assessment life insurance company or under the terms of any certificate, policy  or contract, shall be cancelled.  The word assessment means the right to  require the payment of a sum in addition to the weekly or other periodical dues, contributions, premiums and fees required under the terms of any certificate, policy or contract.

     L.1947, c. 84, p. 467, s. 2.