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23-73-117. Conversion to mutual insurer.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-73-117. Conversion to mutual insurer.
(a) A farmers' mutual aid association as provided for by this chapter may be converted to a mutual insurer as defined in § 23-69-102 under any plan or procedure which may be approved by the order of the Insurance Commissioner after a hearing thereon.
(b) The commissioner shall approve a plan or procedure if he or she finds that:
(1) The plan would not be contrary to law and would not be contrary to the interest of insureds or the public; and
(2) The plan has been approved by a vote of not less than two-thirds (2/3) of the members present or represented by proxy at the meeting, or such greater majority as may be otherwise provided in the association's bylaws. Voting shall be conducted by written ballot which shall be signed by the member, on a ballot form approved by the commissioner prior to voting.
(c) Upon conversion, the association shall possess and thereafter maintain unimpaired surplus as regards policyholders of not less than seven hundred fifty thousand dollars ($750,000).
(d) Upon conversion to a mutual insurer as provided for herein, the association shall be subject to and comply with all laws and rules applicable to mutual insurers.
(e) Any association so converted shall be authorized to write only those lines for which it was authorized to write as a farmers' mutual aid association. However, the converted company may seek to have its certificate of authority amended to write additional lines.
(f) The association shall have a period of time which shall be specified in the commissioner's order to complete the conversion.
(g) Any association converted to a mutual insurer under the provisions of this section shall be designated as a “mutual insurer”, and that designation shall appear immediately followin
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-73-117
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Record provenance
Stable record: arkansas_code:legal_authorities:23-73-117
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 3027a4711454d9b7480c35e218155ac5728c02b5b3e54678b08b4921cca994a3
Source location: content.xml paragraph 42454
Stored source content
23-73-117. Conversion to mutual insurer.
(a) A farmers' mutual aid association as provided for by this chapter may be converted to a mutual insurer as defined in § 23-69-102 under any plan or procedure which may be approved by the order of the Insurance Commissioner after a hearing thereon.
(b) The commissioner shall approve a plan or procedure if he or she finds that:
(1) The plan would not be contrary to law and would not be contrary to the interest of insureds or the public; and
(2) The plan has been approved by a vote of not less than two-thirds (2/3) of the members present or represented by proxy at the meeting, or such greater majority as may be otherwise provided in the association's bylaws. Voting shall be conducted by written ballot which shall be signed by the member, on a ballot form approved by the commissioner prior to voting.
(c) Upon conversion, the association shall possess and thereafter maintain unimpaired surplus as regards policyholders of not less than seven hundred fifty thousand dollars ($750,000).
(d) Upon conversion to a mutual insurer as provided for herein, the association shall be subject to and comply with all laws and rules applicable to mutual insurers.
(e) Any association so converted shall be authorized to write only those lines for which it was authorized to write as a farmers' mutual aid association. However, the converted company may seek to have its certificate of authority amended to write additional lines.
(f) The association shall have a period of time which shall be specified in the commissioner's order to complete the conversion.
(g) Any association converted to a mutual insurer under the provisions of this section shall be designated as a “mutual insurer”, and that designation shall appear immediately following its name on all policies, financial statements, and other documents where its name appears.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-69-102. Definitions.
As used in §§ 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, and 23-69-149 — 23-69-156, unless the context otherwise requires:
(1) A “stock” insurer is an incorporated insurer with capital divided into shares and owned by its stockholders;
(2) A “mutual” insurer is an incorporated insurer without permanent capital stock and the governing body of which is elected as provided in §§ 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, and 23-69-149 — 23-69-156.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-69-102
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-69-102. This identifies an authority to review, not proof of applicability.