40 Pa. Stat. § 924-A

Current through Pa Acts 2024-35, 2024-56

Section 924-A - Mutual company insolvent or in hazardous financial condition

If a mutual company seeking to convert is insolvent or is 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 requirements of this article, including notice to and policyholder approval of the plan of conversion, may be waived at the discretion of the commissioner, if requested by the mutual company, if the commissioner deems appropriate. If a waiver under this section is ordered by the commissioner, the mutual company shall specify in its plan of conversion:

(1) The method and basis for the issuance of the converted stock company's shares of its capital stock to an independent party in connection with an investment by the independent party in an amount sufficient to restore the converted stock company to a sound financial condition.

(2) That the conversion shall be accomplished without granting subscription rights or other consideration to the past, present or future policyholders.

Nothing contained in this section shall alter or limit the authority of the commissioner under any of the provisions of law, including, but not limited to, Article V of "The Insurance Department Act of 1921."

40 P.S. § 924-A

1921, May 17, P.L. 682, No. 284, § 814-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.