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Can you summarize 20 AZRS Chapter 2, Article 8.1?
TRANSACTION OF INSURANCE BUSINESSSec: 20-201-20-492.06 >
Short Summary
These legal documents pertain to the establishment and operation of mutual holding companies in the insurance industry. They outline the process and requirements for the reorganization and conversion of domestic mutual insurers into mutual holding companies. The documents cover various aspects such as the rights and obligations of members, governance of member meetings, and the approval process for a plan of reorganization. They specify that a mutual holding company is not considered an insurer, except for specific sections that apply to them as if they were a domestic mutual insurer. The documents also highlight that a mutual holding company cannot dissolve or liquidate without approval from the director or a judicial order. The director retains jurisdiction over the mutual holding company, intermediate stock holding company, and any subsidiaries. Members of a mutual holding company have specific rights and obligations as outlined in the articles of incorporation and bylaws. They cannot transfer membership or associated rights, but policy assignments are allowed. Members are not personally liable for the company’s acts or obligations, and assessments cannot be imposed on them. The documents clarify that membership interests in a mutual holding company are not considered securities. Each member is entitled to one vote on all matters and for each director to be elected. The documents also cover the provisions that must be included in the articles of incorporation, such as the company name, prohibition on issuing capital stock, and rights of members on dissolution or liquidation. Additionally, the documents state that a mutual holding company is automatically a party to any rehabilitation or liquidation proceeding involving a converted stock insurer that is a subsidiary of the mutual holding company. The assets of the mutual holding company are counted as assets of the converted stock insurer’s estate for the purpose of satisfying policyholder claims. Overall, these legal documents provide a comprehensive framework for the establishment, governance, and reorganization of mutual holding companies in the insurance industry.
Whom does it apply to?
Domestic mutual insurers, mutual holding companies, converted stock insurers, intermediate stock holding companies, directors, officers, policyholders
What does it govern?
Mutual holding companies, plan of reorganization, conversion of mutual insurers, governance of member meetings, rights and obligations of members, approval process for a plan of reorganization
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Arizona