612.23 Conversion of town mutuals into mutual insurance corporations.

240 words·~1 min read·/wi/chapter-612/612-23

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

612.23 Conversion of town mutuals into mutual insurance corporations. One or more town mutuals may be converted into a single mutual insurance corporation under ch. 611 , as follows:

(1)Conversion plan. The board of each participating town mutual shall adopt the same plan of conversion by resolution stating:

(a)The reasons for and the purposes of the proposed action;

(b)The proposed terms, conditions and procedures for and estimated expenses of implementing the conversion;

(c)The proposed name of the corporation; and

(d)The proposed articles and bylaws.

(2)Approval by commissioner. The town mutuals shall file with the commissioner for approval the plan together with so much of the information under s. 611.13

(2)as the commissioner reasonably requires. The commissioner shall approve the plan unless the commissioner finds, after a hearing, that it would be contrary to the law, that the new mutual would not satisfy the requirements for a certificate of authority under s. 611.20 or that the plan would be contrary to the interests of insureds or of the public.

(3)Approval by members. After being approved by the commissioner, the plan shall be submitted to the members of each town mutual for their approval.

(4)Election of directors. A plan of conversion shall contain a provision for prompt election of directors if the plan goes into effect. If the plan is approved by the members of each town mutual, directors shall be elected promptly.