613.76 Conversion of a cooperative association into a service insurance corporation.
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613.76 Conversion of a cooperative association into a service insurance corporation.
(1)Authorization. A cooperative association organized under s. 185.981 may be converted into a service insurance corporation under this chapter as provided in this section.
(2)Action by board. A cooperative association seeking conversion under this section shall adopt a plan of conversion stating all of the following:
(a)The reasons for and purposes of the proposed action.
(b)The proposed terms, conditions, and procedures for implementing the conversion.
(c)The proposed name of the service insurance corporation.
(d)The proposed articles and bylaws of the service insurance corporation.
(3)Commissioner’s approval required.
(a)No proposed plan of conversion under this section may be submitted to the members of the cooperative association under sub.
(4)until the cooperative association submits the plan adopted under sub.
(2)to the commissioner, together with as much of the information under s. 611.13
(2)as the commissioner reasonably requires, and the commissioner approves the plan.
(b)The commissioner shall approve a plan of conversion submitted under par.
(a)unless the commissioner finds, after a hearing, that any of the following would apply:
1. The plan is contrary to law.
2. The surplus of the service insurance corporation or the contracts the service insurance corporation possesses with providers are inadequate to support the plan.
3. The plan is contrary to the interests of members of the cooperative association seeking conversion or the public.
(4)Approval by members. After being approved by the commissioner under sub.
(b), the plan adopted under sub.
(2)shall be submitted for approval to the members of the cooperative association in accordance with ch. 185 .
(5)Report approval to commissioner. A cooperative association seeking conversion under this section that has submitted a plan of conversion to the commissioner under sub.
(a)that is approved by the commissioner under sub.
(b)shall submit evidence to the commissioner that the members of the cooperative association approve of the plan of conversion under sub.
(4).
(6)Amendment, abandonment, articles, and effect of conversion.