Idaho Admin. Code r. 18.07.01.053

Current through September 2, 2024

Section 18.07.01.053 - PLAN OF REORGANIZATION

01.Plan of Reorganization. The plan of reorganization or "Plan" needs to preserve the applicant's property, be fair and equitable to policyholders and protect their interests, and not diminish the applicant's financial condition.

02.Limited Application. A limited application Plan will include:

a. Establishing a MHC with at least one (1) stock insurance company subsidiary or one (1) intermediary stock holding company with a stock insurance company subsidiary, the share of which is held exclusively by the mutual insurance holding company;

b. Protection of existing policyholders' interests;

c. Providing existing and future policyholder membership in the MHC;

d. The number of policyholder members of the board of directors of the MHC;

e. Demonstrating that, if there are proceedings under Title 41, Chapter 33, Idaho Code, involving a stock insurance company subsidiary of the MHC, the assets of the MHC will be available to satisfy the policyholder obligations of the stock insurance company;

f. How any accumulation or prospective accumulation of earnings by the MHC in excess of that determined by the board of directors to be necessary will inure to the exclusive benefit of the MHC's member policyholders;

g. The nature and content of the annual report and financial statement sent to each member; and

h. Other matters the applicant deems appropriate.

03.Standard Application. A standard application Plan includes:

a. Establishing a MHC with at least one (1) stock insurance company subsidiary or one (1) wholly-owned intermediate stock holding company with a stock insurance company subsidiary, the shares of which are held exclusively by the wholly-owned intermediate holding company;

b. Protecting existing policyholders' interests;

c. Providing existing and future policyholder membership in the MHC;

d. The number of policyholder members on the MHC's board of directors;

e. Demonstrating that, if there are proceedings under Title 41, Chapter 33, Idaho Code, involving a stock insurance company subsidiary of the MHC, the assets of the MHC will be available to satisfy the policyholder obligations of the stock insurance company;

f. How any accumulation or prospective accumulation of earnings by the MHC excess of that determined by the MHC's board of directors to be necessary will inure to the exclusive benefit of the MHC's member policyholders;

g. The nature and content of the annual report and financial statement sent to each member; and

h. The plan for a stock offering per this rule; and

i. Other matters the applicant deems appropriate.

Idaho Admin. Code r. 18.07.01.053

Effective April 6, 2023