Find Laws Find Lawyers Free Legal Forms USA State Laws

NEW JERSEY STATUTES AND CODES

17B:18-59 - Mutualization of stock insurers

17B:18-59.  Mutualization of stock insurers
    a.  A stock insurer may become a mutual insurer under such plan and procedure as may be approved by the commissioner after a hearing thereon.

    b.  The commissioner shall not approve any such plan, procedure or mutualization unless:

     (1) It is equitable to stockholders and policyholders;

      (2) It is subject to approval by the holders of not less than   2/3 of the insurer's outstanding capital stock having voting rights and by not less than   2/3   of the insurer's policyholders who are qualified voters and who vote on such plan in person, by proxy or by mail pursuant to such notice and procedure as may be approved by the commissioner;

     (3) Mutualization will result in retirement of shares of the insurer's capital stock at a price not in excess of the fair market value thereof as determined by competent disinterested appraisers;

     (4) The plan provides for the purchase of the shares of any nonconsenting stockholder in the same manner and subject to the same applicable conditions as  provided in New Jersey Business Corporation Act (N.J.S. 14A:1-1 et seq.) as to  rights of nonconsenting stockholders, with respect to consolidation or merger  of private corporations;

     (5) The plan provides for definite conditions to be fulfilled by a designated early date upon which such mutualization will be deemed effective; and

     (6) The mutualization leaves the insurer with surplus funds reasonably adequate for the security of its policyholders and to enable it to continue successfully in business in the States in which it is then authorized to transact insurance, and for the kinds of insurance included in its certificates  of authority in such States.

    c.  This section shall not apply to mutualization under order of court pursuant to rehabilitation or reorganization of an insurer under chapter 32 of this Title.

     L.1971, c. 144, s. 17B:18-59.
 

New Jersey Forms by Issue

New Jersey Court Forms
> Civil (County)
New Jersey Family Forms
New Jersey Tax Forms

New Jersey Law

New Jersey State Laws
    > New Jersey Child Support
    > New Jersey Statutes
New Jersey Tax
    > New Jersey State Tax
New Jersey Labor Laws
    > New Jersey Unemployment
New Jersey Agencies
    > New Jersey Department of Corrections
    > New Jersey Department of Education
    > New Jersey DMV
    > New Jersey State Police

New Jersey Court Map

Tips