612.22 Merger of town mutuals and mutual insurance corporations.

496 words·~2 min read·/wi/chapter-612/612-22-7

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Conditions for merger. One or more town mutuals may merge with a single domestic mutual under ch. 611 . If the domestic mutual is nonassessable, the surviving corporation shall be a mutual under ch. 611 . If the domestic mutual is assessable, the surviving corporation may be either a mutual under ch. 611 or a town mutual under this chapter.

(2)Plan of merger. The board of each participating corporation shall adopt the same plan of merger under s. 181.1102

(1), by resolution containing all of the items described in s. 181.1102

(a)to

(f), and s. 181.1102 shall apply.

(3)Approval by commissioner.

(a)Each of the participating corporations shall file with the commissioner for approval a copy of the resolution and any explanatory material proposed to be issued to the members who have the right to vote on the merger under sub.

(4), together with so much of the information under s. 611.13

(2)or 612.02

(4), whichever is appropriate, for the surviving or new corporation as the commissioner reasonably requires. The commissioner shall approve the plan unless he or she finds, after a hearing, that it would be contrary to the law, or that the surviving or new corporation would not satisfy the requirements for a certificate of authority under s. 611.20 or 612.02

(6), whichever is appropriate, or that the plan would be contrary to the interest of insureds or of the public.

(b)If the surviving corporation will be a town mutual, the plan filed with the commissioner under par.

(a)shall include a time schedule for bringing the surviving corporation into compliance with this chapter. The commissioner may approve a reasonable time schedule that does not exceed 3 years.

(4)Approval by members of the mutuals. After being approved by the commissioner under sub.

(3), the plan shall be submitted for approval to the members of the participating town mutual or mutuals and to the members of the participating domestic mutual if the domestic mutual is assessable. The members of each participating mutual who have the right to vote on the merger shall vote separately.

(6)Reports to commissioner. Each participating mutual, the members of which have the right to vote under sub.

(4), shall file with the commissioner a copy of the resolution adopted under sub.

(4), stating the number of members entitled to vote, the number of members voting, and the number of votes cast in favor of the plan, stating separately in each case the mail votes and the votes cast in person.

(7)Certificate of authority. If the requirements of the law are met, the commissioner shall issue a certificate of authority to the surviving mutual. Thereupon the nonsurviving corporations shall cease their legal existence. The surviving mutual shall have all the assets and be liable for all of the obligations of each of the participating corporations.