Section 26-A4025. MERGER, CONVERSION, REORGANIZATION

4025.1A domestic reciprocal insurer may merge with another reciprocal insurer or be converted to a stock or mutual insurer upon affirmative vote of not less than two thirds of its subscribers who are authorized to vote on such a merger or conversion, provided that timely notice of the proposed action is provided to the Commissioner and that the Commissioner approves in advance of all of the terms of the proposed merger or conversion.

4025.2Such a stock or mutual insurer shall be subject to the same capital or surplus requirements and shall have the same rights as a like domestic insurer transacting like kinds of insurance.

4025.3The Commissioner shall not approve any plan for such merger or conversion which inequitable to subscribers, or which, if for conversion to a stock insurer, does not give each subscriber preferential right to acquire stock of the proposed insurer proportionate to each subscriber’s interest in the reciprocal insurer as determined in accordance with section 4025 of this chapter and a reasonable length of time within which to exercise such right.

4025.4A domestic reciprocal may enter into any reorganization transaction with one or more other insurers where the reciprocal is the surviving or disappearing entity.

authority

The Commissioner of the Department of Insurance, Securities, and Banking, pursuant to the authority set forth in section 22 of the Captive Insurance Company Act of 2004, effective March 17, 2005 (D.C. Law 15-262; D.C. Official Code § 31-3931.21).

source

Notice of Emergency and Proposed Rulemaking published at 54 DCR 12099 (December 14, 2007)[EXPIRED]; as amended by Notice of Final Rulemaking published at 55 DCR 479, 489 (January 18, 2008).