Texas Insurance Code
§ 826.052 — GENERAL REQUIREMENTS; EFFECT OF CONVERSION ON POLICIES
IN § 826.052Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part B. ORGANIZATION OF REGULATED ENTITIES · Ch. 826. CONVERSION OF MUTUAL INSURANCE COMPANY TO STOCK INSURANCE COMPANY · Art. B. CONVERSION PLAN ADOPTION AND REQUIREMENTS
Statute text
View on source(a)Each conversion plan must include the provisions required by this chapter.
(b)Each policy in effect on the effective date of the conversion remains in effect under the terms of that policy, except that the following rights, to the extent they existed in the converting company, are extinguished on the effective date of the conversion:
(1)any voting rights of policyholders;
(2)except as provided by Subsection (c), a right to share in the surplus or profits of the converting company; and
(3)any assessment provisions.
(c)The holder of a participating policy in effect on the effective date of the conversion continues to have a right to receive dividends as provided by the participating policy.
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Legislative history
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.