Texas Insurance Code
§ 829.154 — EFFECT OF CONVERSION ON POLICIES; SUBSCRIBER ACCOUNTS
IN § 829.154Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part B. ORGANIZATION OF REGULATED ENTITIES · Ch. 829. CONVERSION OF RECIPROCAL OR INTERINSURANCE EXCHANGE TO STOCK COMPANY THROUGH CREATION OF A MUTUAL HOLDING COMPANY · Art. D. EFFECT OF PLAN; RIGHTS OF MEMBERS
Statute text
View on source(a)Each policy in effect on the effective date remains in effect under the terms of that policy, except that the following rights, to the extent they existed in the converting exchange in favor of policyholders or members, are extinguished on the effective date:
(1)any membership and voting rights;
(2)except as provided by Subsection (b) or in the conversion plan approved by the commissioner, a right to share in the surplus or profits of the converting exchange; and
(3)any assessment provisions.
(b)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.
(c)On the renewal date of a participating policy, the resulting company may issue to the insured a nonparticipating policy as a substitute for the participating policy.
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Legislative history
Added by Acts 2007, 80th Leg., R.S., Ch. 412 (S.B. 1056), Sec. 1, eff. June 15, 2007.