California Insurance Code

§ 4091

INS § 4091 Effective Jan 1, 1996Div. 2 · Part 1 · Ch. 4 · Art. 9

Statute text

The plan and agreement by which any such transaction is to be effected shall be approved by a resolution of the majority of the board of directors of each domestic mutual insurer reciting the reasons for and the purposes of the proposed transaction and the manner in which the transaction is expected to benefit and serve the best interests of the domestic mutual insurer and its members. The plan and agreement shall thereafter be submitted to the commissioner, who shall examine the same and require such provisions to be inserted in the agreement and such actions to be taken in connection with the transaction including, but not limited to the following:

(a)The terms and conditions of the transaction.

(b)Any fee, commission, or other valuable consideration whatsoever, other than regular salary and compensation paid to any director, officer, agent, or employee of the domestic mutual insurer in connection with the transaction.

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Legislative history

Amended by Stats. 1995, Ch. 728, Sec. 5. Effective January 1, 1996.