California Insurance Code

§ 11538

INS § 11538 Effective Jan 1, 2000Div. 2 · Part 2 · Ch. 14 · Art. 1

Statute text

(a)The commissioner shall examine the plan submitted pursuant to subdivision (b) of Section 11536. As a part of the examination the commissioner may order a hearing on the plan after written notice of the hearing to the mutual company, and its members, all of whom shall have the right to appear at the hearing. The commissioner may require as a condition of consent that the mutual company make modifications of the proposed plan that the commissioner finds necessary for the protection of policyholders. The commissioner shall consent to the plan if he or she finds all of the following:

(1)For the conversion of a mutual insurer, the plan is fair and equitable to the insurer and its policyholders.

(2)For the conversion of a mutual holding company, the plan is fair and equitable to the company, its members, and the policyholders of the converted insurer.

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Legislative history

Amended by Stats. 1999, Ch. 868, Sec. 6. Effective January 1, 2000.