reglab/housing_qa huggingface dataset:
NE Code § 44-6108 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6108 - Initial determination; application disapproval.

44-6108.  Initial determination; application disapproval.(1) The director shall issue an order making an initial determination to approve or disapprove the application within thirty days after the close of the public hearing as required by section 44-6107.(2)(a) The director shall not approve the application unless he or she finds that:(i) The plan of conversion is fair and equitable to the policyholders;(ii) The plan of conversion does not deprive the policyholders of their property rights or due process of law; and(iii) The new stock insurer would meet the minimum requirements to be issued a certificate of authority by the director to transact business in this state and the continued operations of the new stock insurer would not be hazardous to future policyholders and the public.(b) For purposes of this subsection, the director may consider any relevant factor, including, but not limited to:(i) The capital requirements of the new stock insurer;(ii) Whether a portion of the statutory surplus has been contributed by persons or entities whose policies or contracts are not in force on the date the plan of conversion is initially approved by the board of directors of the mutual insurer and, in such event, the consideration to policyholders may be less than the statutory surplus;(iii) Whether the plan of conversion includes preemptive rights for policyholders to purchase securities offered in the initial sale of securities by the new stock insurer;(iv) Whether the plan of conversion includes establishment of a preference account from which the payment of any shareholder dividends, including a regular, special, or liquidation dividend, would be prohibited for a reasonable period of time as the director may require;(v) The suitability of the trustees of any trust created pursuant to the provisions of section 44-6106; and(vi) Whether the utilization of a trust, if included in the plan of conversion, has a material adverse effect on policyholders, other than delaying receipt of shares of capital stock.(3) If the director makes a determination to disapprove the application, the director shall issue a final order setting forth specific findings for the disapproval.Source   Laws 1993, LB 583, § 48;   Laws 1997, LB 52, § 6;  Laws 1999, LB 326, § 8.
NE Code § 44-6109 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6109 - Policyholders' vote.

44-6109.  Policyholders' vote.Within forty-five days after the date of the director's initial determination of approval pursuant to section 44-6108, unless extended by the director for good cause, the mutual insurer shall hold a meeting of its policyholders at a reasonable time and place to vote upon the plan of conversion. The mutual insurer shall give notice at least thirty days before the time fixed for the meeting, by first-class mail to the last-known address of each policyholder, that the plan of conversion will be voted upon at a regular or special meeting of the policyholders, which notice shall include a brief description of the plan of conversion and a statement that the director has initially approved the plan of conversion. The notice mailing to each policyholder shall also include a written proxy permitting the policyholder to vote for or against the plan of conversion. The entity to which any group insurance policy is issued, and not any person covered under the group insurance policy, shall be considered the policyholder for purposes of voting. A plan of conversion shall be approved only if not less than two-thirds of the policyholders voting in person or by proxy at the meeting vote in favor of such plan of conversion. Each policyholder shall be entitled to only one vote regardless of the number of policies owned by the policyholder. The director shall supervise and direct the conduct of the vote on the plan of conversion as necessary to ensure that the vote is fair and consistent with the requirements of this section. The director shall enter a final order approving the application to convert to a stock insurer within ten days after receiving a valid certification from the mutual insurer setting forth the vote and certifying that the plan of conversion was approved by not less than two-thirds of the policyholders voting in person or by proxy on the plan of conversion. In such event, the director shall also publish notification of the issuance of the final order in a legal newspaper in Lancaster County and in the county of domicile of the mutual insurer if different than Lancaster County.Source   Laws 1993, LB 583, § 49;   Laws 1997, LB 52, § 7.
NE Code § 44-6110 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6110 - Conversion.

44-6110.  Conversion.The director shall issue a certificate of authority to a new stock insurer when the mutual insurer files a certificate with the director stating that all of the conditions set forth in the plan of conversion have been satisfied so long as the board of directors of the mutual insurer has not abandoned the plan of conversion pursuant to section 44-6114. The conversion shall be effective upon the issuance of a certificate of authority by the director. Upon issuance of the certificate of authority, the insurer's articles of incorporation shall be treated as amended in compliance with section 44-231.Source  Laws 1993, LB 583, § 50.
NE Code § 44-6111 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6111 - Appeal from the final order.

44-6111.  Appeal from the final order.Any person affected by a final order issued pursuant to the Insurers Demutualization Act shall have the right to appeal such order to the district court of Lancaster County. The appeal shall be in accordance with the Administrative Procedure Act.Source  Laws 1993, LB 583, § 51. Cross References  Administrative Procedure Act, see section 84-920.
NE Code § 44-6112 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6112 - Continuation of corporate existence.

44-6112.  Continuation of corporate existence.Corporate existence of a mutual insurer converting to a stock insurer pursuant to the Insurers Demutualization Act shall not terminate, but the new stock insurer shall be deemed to be a continuation of the mutual insurer and to have been organized on the date the mutual insurer was originally organized.Source  Laws 1993, LB 583, § 52.
NE Code § 44-6113 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6113 - Name.

44-6113.  Name.If the name of a mutual insurer converting to a stock insurer pursuant to the Insurers Demutualization Act includes the word mutual, the new stock insurer may continue to use the word mutual in its name if (1) the name includes a word or words that identify the new stock insurer as a stock insurer and (2) the director finds that the continued use of the word mutual in its name is not likely to mislead or deceive the public.Source  Laws 1993, LB 583, § 53.
NE Code § 44-6114 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6114 - Abandonment.

44-6114.  Abandonment.A mutual insurer may, by not less than a two-thirds vote of the members of its board of directors and with the approval of the director, abandon the plan of conversion at any time before the issuance of the certificate of authority by the director. Upon such abandonment, all rights and obligations arising out of the plan of conversion shall terminate and the mutual insurer shall continue to conduct its business as a domestic mutual insurer as though no plan of conversion had ever been adopted.Source  Laws 1993, LB 583, § 54.
NE Code § 44-6115.01 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6115.01 - Anti-takeover provision; voting of securities; limitations; enforcement.

44-6115.01.  Anti-takeover provision; voting of securities; limitations; enforcement.No security which is the subject of any agreement or arrangement regarding acquisition, or which is acquired or to be acquired, in contravention of section 44-6115 or of any rule, regulation, or order of the director may be voted at any shareholders' meeting or may be counted for quorum purposes, and any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though such securities were not issued and outstanding, but no action taken at any such meeting shall be invalidated by the voting of such securities unless the action would materially affect control of the new stock insurer or an institution which owns a majority or all of the voting securities of the new stock insurer or unless the courts of this state have so ordered. If a new stock insurer or the director has reason to believe that any security of the new stock insurer or an institution which owns a majority or all of the voting securities of the new stock insurer has been or is about to be acquired in contravention of the Insurers Demutualization Act or of any rule, regulation, or order of the director, the new stock insurer or the director may apply to the district court of Lancaster County for an order to enjoin any offer or acquisition made in contravention of section 44-6115 or any rule, regulation, or order of the director to enjoin the voting of any security so acquired, to void any vote of such security already cast at any shareholders' meeting, and for such other equitable relief as the nature of the case and the interest of the new stock insurer's policyholders, creditors, and shareholders or the public may require.Source  Laws 1997, LB 52, § 9.
NE Code § 44-6115.02 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6115.02 - Seizure or sequestration of securities; when.

44-6115.02.  Seizure or sequestration of securities; when.In any case when a person has acquired or is proposing to acquire any voting securities in violation of the Insurers Demutualization Act or any rule, regulation, or order of the director, the district court of Lancaster County may, on such notice as the court deems appropriate, upon the application of the director or the new stock insurer seize or sequester any voting securities of the new stock insurer or an institution which owns a majority or all of the voting securities of the new stock insurer owned directly or indirectly by such person and issue such order with respect thereto as may be appropriate to effectuate the act. Notwithstanding any other provisions of law, for purposes of the act, situs of the ownership of such securities shall be deemed to be in this state.Source  Laws 1997, LB 52, § 10.
NE Code § 44-6115.03 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6115.03 - Failure to file application; penalty.

44-6115.03.  Failure to file application; penalty.Any person who fails to file an application for acquisition and obtain the prior approval of the director as required by section 44-6115 may be required by the director, after notice and hearing, to pay an administrative penalty of one hundred dollars for each day's delay not to exceed an aggregate penalty of ten thousand dollars. The director may reduce the penalty if the person demonstrates to the director that the imposition of the penalty would constitute a financial hardship to the person.Source  Laws 1997, LB 52, § 11.
NE Code § 44-6115.04 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6115.04 - Anti-takeover provision; violation; penalty.

44-6115.04.  Anti-takeover provision; violation; penalty.Any director or officer of a person or an agent of the person who knowingly violates or assents to or permits any officer or agent of the person to violate the requirements of section 44-6115 may be required by the Director of Insurance, after notice and hearing, to pay, in his or her individual capacity, an administrative penalty of not more than five thousand dollars per violation. In determining the amount of the penalty, the Director of Insurance shall take into account the appropriateness of the penalty with respect to the gravity of the violation, the history of previous violations, and such other matters as justice may require.Source  Laws 1997, LB 52, § 12.
NE Code § 44-6115.05 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6115.05 - Anti-takeover provision; violation; cease and desist order.

44-6115.05.  Anti-takeover provision; violation; cease and desist order.Whenever it appears to the director that any person or any director, officer, employee, or agent of the person has engaged in any conduct in violation of section 44-6115, the director may order the person to cease and desist immediately any further activity. After notice and hearing, the director may also order the person to void any contracts and restore the status quo if such action is in the best interest of the policyholders, the creditors, or the public.Source  Laws 1997, LB 52, § 13.
NE Code § 44-6116 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6116 - Stock purchase rights.

44-6116.  Stock purchase rights.Nothing in the Insurers Demutualization Act shall prohibit the inclusion in the plan of conversion of provisions under which individuals comprising the new stock insurer's board of directors, officers, employees, agents, and persons acting as trustees of employee stock ownership plans or other employee benefit plans may be entitled to purchase for cash capital stock of the new stock insurer at the same price initially issued by the new stock insurer under the plan of conversion but no such purchase may be made while any shares of capital stock are held in a trust established pursuant to the plan of conversion.Source   Laws 1993, LB 583, § 56;  Laws 1999, LB 326, § 9.
NE Code § 44-6117 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6117 - Compensation.

44-6117.  Compensation.(1)(a) No director, officer, employee, or agent of the mutual insurer and no other person shall receive any fee, commission, or other valuable consideration whatsoever, other than his or her usual regular salary and compensation, for in any manner aiding, promoting, or assisting in a plan of conversion except as set forth in the plan of conversion approved by the director.(b) Subdivision (1)(a) of this section shall not prohibit a management-incentive compensation program which is contained in the plan of conversion and approved by the director to be adopted upon conversion to the new stock insurer or prohibit such a program to be later adopted by the new stock insurer.(c) All fees, commissions, compensation, and valuable consideration described in this subsection shall be subject to the restrictions on salary, compensation, and emoluments in section 44-213.(2) Subdivision (1)(a) of this section shall not be deemed to prohibit the payment of reasonable fees and compensation to attorneys, accountants, actuaries, and investment bankers for services performed in the independent practice of their professions even though any such person is also a member of the board of directors of the mutual insurer.Source   Laws 1993, LB 583, § 57;   Laws 1997, LB 52, § 14.
NE Code § 44-6118 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6118 - Insolvent mutual insurers.

44-6118.  Insolvent mutual insurers.Notwithstanding the requirements of section 44-6105, in the event of insolvency of the mutual insurer, its board of directors by a vote of not less than two-thirds of its members may, in its application, request that the director waive the requirements imposing notice to policyholders and policyowner approval for the plan of conversion. The application shall specify both of the following:(1) The method and basis for the issuance of the new stock insurer's shares of its capital stock to an independent party in connection with an investment by such independent party in an amount sufficient to restore the insurer to a sound financial condition; and(2) That the conversion shall be accomplished without distribution to the past, present, or future policyholders, if the director finds that the value of the insurer, due to insolvency, is insufficient to warrant any such distribution.If the director determines that the mutual insurer is insolvent as defined in section 44-4803, he or she shall grant the request to waive the requirements imposing notice to policyholders and policyowner approval for the plan of conversion.Source  Laws 1993, LB 583, § 58.
NE Code § 44-6119 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6119 - Experts; costs.

44-6119.  Experts; costs.For the purpose of determining whether a plan of conversion meets the requirements of the Insurers Demutualization Act or in connection with any other matters relating to development of a plan of conversion, the director may engage the services of experts. All reasonable costs related to the review of a plan of conversion or such other matters, including those costs attributable to the use of experts, shall be paid by the mutual insurer making the filing or initiating discussions with the director about such matters.Source   Laws 1993, LB 583, § 59;   Laws 1997, LB 52, § 15.
NE Code § 44-6120 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6120 - Rules and regulations; orders.

44-6120.  Rules and regulations; orders.The director may adopt and promulgate rules and regulations and issue orders to carry out the Insurers Demutualization Act.Source   Laws 1993, LB 583, § 60;   Laws 1997, LB 52, § 18.
NE Code § 44-6121 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6121 - Violation; penalty; enforcement.

44-6121.  Violation; penalty; enforcement.Whenever it appears to the director that any person or any director, officer, employee, or agent of the person has committed or is about to commit a violation of the Insurers Demutualization Act or of any rule, regulation, or order of the director, the director may apply to the district court of Lancaster County for an order enjoining such person, director, officer, employee, or agent from violating or continuing to violate the act or any such rule, regulation, or order and for such other equitable relief as the nature of the case and the interest of the insurer's policyholders, creditors, and shareholders or the public may require.Source  Laws 1997, LB 52, § 17.
NE Code § 44-6122 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6122 - Act, how cited.

44-6122.  Act, how cited.Sections 44-6122 to 44-6143 shall be known and may be cited as the Mutual Insurance Holding Company Act.Source   Laws 1997, LB 740, § 1;  Laws 1999, LB 259, § 13;  Laws 2005, LB 119, § 22.
NE Code § 44-6123 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6123 - Legislative findings and declarations.

44-6123.  Legislative findings and declarations.The Legislature finds and declares that it is in the public interest that a domestic mutual insurer be permitted to reorganize in a manner that preserves attributes of its mutuality while facilitating capital raising abilities and corporate affiliations on terms and conditions that are fair and equitable to the mutual insurer's policyholders. The Legislature further finds that because policyholders of a mutual insurer have membership interests in the mutual insurer, the director should have broad authority in reviewing a reorganization and the procedures and criteria to be applied by the director should be flexible within the parameters of the Mutual Insurance Holding Company Act. The act shall be liberally construed to effect the legislative intent set forth in this section and shall not be interpreted to limit the powers granted to the director by other provisions of the law.Source  Laws 1997, LB 740, § 2.
NE Code § 44-6124 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6124 - Terms, defined.

44-6124.  Terms, defined.For purposes of the Mutual Insurance Holding Company Act:(1) Director means the Director of Insurance;(2) Intermediate stock holding company means a holding company of which at least a majority of the voting securities are owned by a mutual insurance holding company and which, directly or indirectly, owns all of the voting securities of a reorganized stock insurer;(3) Mutual insurance holding company means a holding company based on a mutual plan which at all times owns, directly or indirectly, a majority of the voting securities of one or more intermediate stock holding companies or, if no such intermediate stock holding company exists, which owns a majority of the voting securities of a reorganized stock insurer;(4) Reorganized stock insurer means a stock insurer subsidiary which results from a reorganization of a domestic mutual insurer pursuant to subsection (1) or (2) of section 44-6125 and in compliance with the act; and(5) Voting securities means securities of any class or any ownership interest having voting power for the election of directors, trustees, or management, other than securities having voting power only because of the occurrence of a contingency.Source   Laws 1997, LB 740, § 3;  Laws 2004, LB 1047, § 19.
NE Code § 44-6126 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-6126 - Plan of reorganization; contents.

44-6126.  Plan of reorganization; contents.A domestic mutual insurer shall file a proposed plan of reorganization approved by a vote of not less than two-thirds of the members of its board of directors for review and approval with the director. The proposed plan of reorganization shall be accompanied by a nonrefundable fee of one thousand dollars. A plan of reorganization shall include the following at a minimum:(1) An analysis of the benefits and risks attendant to the proposed reorganization, including the rationale and comparative benefits and risks of a demutualization;(2) A statement of how the plan is fair and equitable to the policyholders;(3) Information sufficient to demonstrate that the financial condition of the mutual insurer will not be diminished upon reorganization;(4) Provisions to ensure immediate membership in the mutual insurance holding company for all existing policyholders of the mutual insurer;(5) Provisions for membership interests for future policyholders of the reorganized stock insurer;(6) Provisions to ensure that, in the event of proceedings for rehabilitation or liquidation involving a stock insurer subsidiary of the mutual insurance holding company, the assets of the mutual insurance holding company will be available to satisfy the policyholder obligations of the stock insurer subsidiary;(7) Provisions for periodic distribution of accumulated mutual insurance holding company earnings;(8) Certified copies of the proposed articles of incorporation and bylaws of the mutual insurance holding company, intermediate stock holding company, and reorganized stock insurer or proposed amendments thereto as necessary to effectuate reorganization;(9) A certification that the plan of reorganization has been duly adopted by a vote of not less than two-thirds of the members of the board of directors of the mutual insurer;(10) A certification adopted by not less than two-thirds of the members of the board of directors of the mutual insurer that the plan of reorganization is fair and equitable to the policyholders;(11) The names, addresses, and occupational information of all corporate officers and all members of the board of directors of the proposed mutual insurance holding company in the case of a reorganization described in subsection (1) of section 44-6125;(12) A description of the nature and content of the annual report and financial statement to be sent by the mutual insurance holding company to each member;(13) A description of the number of members of the board of directors of the mutual insurance holding company required to be policyholders;(14) A description of any plans for the initial sale of stock of the intermediate stock holding company or reorganized stock insurer;(15) A form of the proposed notice to be mailed by the mutual insurer to its policyholders as required in section 44-6129; and(16) Any other information requested by the director.Source  Laws 1997, LB 740, § 5.