reglab/housing_qa huggingface dataset:
MT Code § 33-3-203 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 2. Formation|33-3-203. Amendment of articles of incorporation -- grounds for disapproval

  33-3-203. Amendment of articles of incorporation -- grounds for disapproval. (1) A domestic stock insurer may amend its articles of incorporation for any lawful purpose by written authorization of the holders of a majority of the voting power of its outstanding capital stock or by affirmative vote of a majority voting at a lawful meeting of stockholders of which the notice given to stockholders included notice of the proposal to amend.   (2) A domestic mutual insurer may amend its articles of incorporation for any lawful purpose by affirmative vote of a majority of those of its members present or represented by proxy at a lawful meeting of its members of which the notice given members included notice of the proposal to amend.   (3) Upon adoption of an amendment, the insurer shall set forth the amendment and the date and manner of the amendment's adoption in articles of amendment. The articles of amendment must be executed by the insurer's president or vice president and secretary or assistant secretary and acknowledged by them before an officer authorized by law to take acknowledgments of deeds. The insurer shall deliver to the commissioner the articles of amendment. If the commissioner finds that the articles of amendment and the amendment comply with law, the amendment must be approved. The amendment is effective when it has been filed with the secretary of state.   (4) If the commissioner finds that the proposed amendment or the articles of amendment do not comply with the law, the commissioner may not approve the amendment or the articles of amendment and shall provide a written statement of reasons for nonapproval. The filing fee is not returnable.   (5) If an amendment of articles of incorporation would reduce the authorized capital stock of a stock insurer below the amount then outstanding, the commissioner may not approve the amendment if the commissioner has reason to believe that the interests of policyholders or creditors of the insurer would be materially prejudiced by the reduction. If a reduction of capital stock is realized, the insurer may require the return of the original certificates of stock held by each stockholder for exchange for new certificates for the number of shares as the stockholder is then entitled in the proportion that the reduced capital bears to the amount of capital stock outstanding as of immediately prior to the effective date of the reduction.   History: En. Sec. 424, Ch. 286, L. 1959; R.C.M. 1947, 40-4707; amd. Sec. 6, Ch. 316, L. 1999; amd. Sec. 29, Ch. 227, L. 2001; amd. Sec. 5, Ch. 117, L. 2019.
MT Code § 33-3-204 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 2. Formation|33-3-204. Initial qualifications -- domestic mutuals

  33-3-204. Initial qualifications -- domestic mutuals. (1) When newly organized, a domestic mutual insurer may be authorized to transact any of the kinds of insurance as are permitted under 33-2-108.   (2) When applying for an original certificate of authority, the insurer must be otherwise qualified therefor under this code and must have unimpaired surplus funds in an amount not less than the amount of paid-in capital stock required of a domestic stock insurer transacting like kinds of insurance as in 33-2-109, subject further to the additional special surplus requirements of 33-2-110 applicable to such stock insurer. The minimum amount of surplus must thereafter be maintained unimpaired and placed on deposit with the commissioner. The deposit is subject to the provisions of chapter 2, part 6, of this title and 33-2-111.   History: En. Sec. 425, Ch. 286, L. 1959; R.C.M. 1947, 40-4708; amd. Sec. 10, Ch. 303, L. 1981.
MT Code § 33-3-205 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 2. Formation|33-3-205. Formation of mutual insurer -- bond

  33-3-205. Formation of mutual insurer -- bond. (1) Before soliciting applications for insurance to raise surplus funds to qualify for the original certificate of authority, the incorporators of the proposed insurer shall file with the commissioner a corporate surety bond in the penalty of $50,000, in favor of the state and for the use and benefit of the state and of applicant members and creditors of the corporation. The bond shall be conditioned as follows:   (a) for the prompt return to applicant members of all premiums collected in advance;   (b) for payment of all indebtedness of the corporation; and   (c) for payment of costs incurred by the state in event of any legal proceedings for liquidation or dissolution of the corporation, all in the event the corporation fails to complete its organization and secure a certificate of authority within 1 year after the date of its certificate of incorporation.   (2) In lieu of such bond, the incorporators may deposit with the commissioner $50,000 in cash or United States government bonds, negotiable and payable to the bearer, with a market value at all times of not less than $50,000, to be held in trust upon the same conditions as required for the bond.   (3) Any such bond filed or deposit or remaining portion thereof held under this section shall be released and discharged upon settlement and termination of all liabilities against it.   History: En. Sec. 426, Ch. 286, L. 1959; R.C.M. 1947, 40-4709; amd. Sec. 11, Ch. 303, L. 1981.
MT Code § 33-3-206 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 2. Formation|33-3-206. Applications for insurance in formation of mutual insurer

  33-3-206. Applications for insurance in formation of mutual insurer. (1) Upon receipt of the commissioner's approval of the bond or deposit as provided in 33-3-205, the directors and officers of the proposed domestic mutual insurer may commence solicitation of such requisite applications for insurance policies as they may accept and may receive deposits of premiums thereon.   (2) All such applications shall be in writing signed by the applicant, covering subjects of insurance resident, located, or to be performed in this state.   (3) All such applications shall provide that:   (a) issuance of the policy is contingent upon the insurer qualifying for and receiving a certificate of authority;   (b) no insurance is in effect unless and until the certificate of authority has been issued; and   (c) the prepaid premium or deposit and membership or policy fee, if any, shall be refunded in full to the applicant if organization is not completed and the certificate of authority is not issued and received by the insurer before a specified reasonable date, which date shall be not later than 1 year after the date of the certificate of incorporation.   (4) All qualifying premiums collected shall be in cash.   (5) Solicitation for such qualifying applicants for insurance shall be by licensed insurance producers of the corporation, and the commissioner shall, upon the corporation's application therefor, issue temporary insurance producer's licenses expiring on the date specified pursuant to subsection(3)(c) above to individuals qualified as for a resident insurance producer's license except as to the taking or passing of an examination. The commissioner may suspend or revoke any such license for any of the causes and pursuant to the same procedures as are applicable to suspension or revocation of licenses of insurance producers in general under chapter 17.   History: En. Sec. 427, Ch. 286, L. 1959; R.C.M. 1947, 40-4710; amd. Sec. 1, Ch. 713, L. 1989.
MT Code § 33-3-207 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 2. Formation|33-3-207. Formation of mutuals -- trust deposit of premiums -- issuance of policies

  33-3-207. Formation of mutuals -- trust deposit of premiums -- issuance of policies. (1) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this state under a written trust agreement consistent with this section and with 33-3-206(3)(c). The corporation shall file an executed copy of such trust agreement with the commissioner.   (2) Upon issuance to the corporation of a certificate of authority as an insurer for the kind of insurance for which such applications were solicited, all funds so held in trust shall become the funds of the insurer, and the insurer shall thereafter in due course issue and deliver its policies for which premiums had been paid and accepted. The insurance provided by such policies shall be effective as of the date of the certificate of authority or thereafter as provided by the respective policies.   History: En. Sec. 428, Ch. 286, L. 1959; R.C.M. 1947, 40-4711.
MT Code § 33-3-208 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 2. Formation|33-3-208. Formation of mutuals -- failure to qualify

  33-3-208. Formation of mutuals -- failure to qualify. If the proposed domestic insurer fails to complete its organization and to secure its original certificate of authority within 1 year after the date of its certificate of incorporation, its corporate powers shall cease and the commissioner shall return or cause to be returned to the persons entitled thereto all advance deposits or payments of premiums held in trust under 33-3-207.   History: En. Sec. 429, Ch. 286, L. 1959; R.C.M. 1947, 40-4712.
MT Code § 33-3-209 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 2. Formation|33-3-209. through 33-3-214 reserved

  33-3-209 through 33-3-214 reserved.
MT Code § 33-3-215 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 2. Formation|33-3-215. Mutualization of stock insurer

  33-3-215. Mutualization of stock insurer. (1) A stock insurer other than a title insurer may become a mutual insurer under a plan and procedure approved by the commissioner after a hearing thereon.   (2) The commissioner shall not approve any plan, procedure, or mutualization unless:   (a) it is equitable to stockholders and policyholders;   (b) it is subject to approval by the holders of not less than three-fourths of the insurer's outstanding capital stock having voting rights and by not less than two-thirds of the insurer's policyholders who vote on such plan in person, by proxy, or by mail pursuant to such notice and procedure as may be approved by the commissioner;   (c) if a life insurer, the right to vote thereon is limited to holders of policies other than term or group policies and whose policies have been in force for more than 1 year;   (d) mutualization will result in retirement of shares of the insurer's capital stock at a price not in excess of the fair market value thereof as determined by competent disinterested appraisers;   (e) the plan provides for the purchase of the shares of any nonconsenting stockholder in the same manner and subject to the same applicable conditions as provided by Title 35, chapter 14, part 13, as to rights of nonconsenting stockholders, with respect to consolidation or merger of private corporations;   (f) the plan provides for definite conditions to be fulfilled by a designated early date upon which such mutualization will be deemed effective; and   (g) the mutualization leaves the insurer with surplus funds reasonably adequate for the security of its policyholders and to enable it to continue successfully in business in the states in which it is then authorized to transact insurance and for the kinds of insurance included in its certificates of authority in such states.   (3) This section shall not apply to mutualization under order of court pursuant to rehabilitation or reorganization of an insurer under chapter 2, part 13.   History: En. Sec. 460, Ch. 286, L. 1959; R.C.M. 1947, 40-4743; amd. Sec. 13, Ch. 198, L. 1979; amd. Sec. 141, Ch. 575, L. 1981; amd. Sec. 232, Ch. 271, L. 2019.
MT Code § 33-3-216 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 2. Formation|33-3-216. Converting mutual insurer to stock insurer

  33-3-216. Converting mutual insurer to stock insurer. (1) A mutual insurer may become a stock insurer under a plan and procedure as may be approved by the commissioner after a hearing.   (2) The commissioner may not approve any plan or procedure unless:   (a) it is equitable to the insurer's members;   (b) it is subject to approval by vote of not less than three-fourths of the insurer's current members voting on the plan or procedure in person, by proxy, or by mail at a meeting of members called for the purpose pursuant to reasonable notice and procedure that may be approved by the commissioner. If the insurer is a life insurer, the right to vote may be limited to members who hold policies other than term or group policies and whose policies have been in force for not less than 1 year.   (c) the equity of each policyholder in the insurer is determinable under a fair formula approved by the commissioner, which equity must be based upon not less than the insurer's entire surplus, after deducting contributed or borrowed surplus funds, plus a reasonable present equity in its reserves and in all nonadmitted assets;   (d) the policyholders entitled to participate in the purchase of stock or distribution of assets must include all current policyholders and all existing persons who had been policyholders of the insurer within 3 years prior to the date the plan was submitted to the commissioner;   (e) the plan gives to each policyholder of the insurer, as specified in subsection (2)(d), a preemptive right to acquire the policyholder's proportionate part of all of the proposed capital stock of the insurer, within a designated reasonable period, and to apply upon the purchase of the stock the amount of the policyholder's equity in the insurer as determined under subsection (2)(c);   (f) shares are offered to policyholders at a price not greater than the price to be offered to others but at not more than double the par value of the shares;   (g) the plan provides for payment to each policyholder not electing to apply the policyholder's equity in the insurer for or upon the purchase price of stock to which preemptively entitled of cash in the amount of not less than 50% of the amount of the equity not used for the purchase of stock, and which cash payment together with stock purchased, if any, constitutes full payment and discharge of the policyholder's equity as an owner of the mutual insurer; and   (h) the plan, when completed, would provide for the converted insurer paid-in capital stock in an amount not less than the minimum paid-in capital required of a domestic stock insurer transacting like kinds of insurance, together with surplus funds in amount not less than one-half of the required capital.   History: En. Sec. 461, Ch. 286, L. 1959; R.C.M. 1947, 40-4744; amd. Sec. 1132, Ch. 56, L. 2009.
MT Code § 33-3-218 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 2. Formation|33-3-218. Mergers and consolidations of mutual insurers

  33-3-218. Mergers and consolidations of mutual insurers. (1) A domestic mutual insurer may not merge or consolidate with a stock insurer.   (2) A domestic mutual insurer may merge or consolidate with another mutual insurer under the applicable procedures prescribed by the statutes of this state applying to corporations formed for profit, except as provided in this section.   (3) The plan and agreement for merger or consolidation must be submitted to and approved by at least two-thirds of the members of each mutual insurer involved by voting on the issue at meetings called for the purpose pursuant to reasonable notice and procedure that has been approved by the commissioner. If the insurer is a life insurer, the right to vote may be limited to members whose policies are other than term and group policies and have been in effect for more than 1 year.   (4) A merger or consolidation may not be effectuated unless in advance of the merger or consolidation the plan and agreement for the merger or consolidation have been filed with the commissioner and approved by the commissioner after a hearing. The commissioner shall give approval within a reasonable time after the filing unless the commissioner finds that the plan or agreement:   (a) is inequitable to the policyholders of any domestic insurer involved; or   (b) would substantially reduce the security of and service to be rendered to policyholders of the domestic insurer in this state and elsewhere.   (5) If the commissioner does not approve the plan or agreement, the commissioner shall notify the insurers in writing specifying the reasons for disapproval.   (6) Section 33-3-217(5) also applies to mergers and consolidations of mutual insurers.   (7) Upon merger or consolidation of a domestic insurer with another insurer under this chapter, the corporate charter of the merged or consolidated domestic insurer must automatically be extinguished and nullified.   History: En. Secs. 463, 467, Ch. 286, L. 1959; R.C.M. 1947, 40-4746, 40-4750(4); amd. Sec. 1134, Ch. 56, L. 2009.
MT Code § 33-3-301 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 3. Management|33-3-301. Bylaws of mutual

  33-3-301. Bylaws of mutual. (1) A domestic mutual insurer must have bylaws for the governing of its affairs. The initial board of directors of the insurer shall adopt original bylaws, subject to the approval of the insurer's members at the next meeting. The members have the power to make, modify, and revoke bylaws.   (2) The bylaws must provide:   (a) that each member is entitled to one vote upon each matter coming to a vote at meetings of members or to more votes in accordance with a reasonable classification of members as set forth in the bylaws and based upon the amount of insurance in force, upon the number of policies held or the amount of the premiums paid by the member, or upon other reasonable factors. A member has the right to vote in person or by written proxy. A proxy may not be irrevocable or for longer than a reasonable period of time.   (b) for election of directors by the members and the number, qualifications, terms of office, and powers of directors;   (c) the time, notice, quorum, and conduct of annual and special meetings of members and voting at the meetings. The bylaws may provide that the annual meeting must be held at a place, date, and time to be set forth in the policy and without giving other notice of the meeting.   (d) the number, designation, election, terms, and powers and duties of the respective corporate officers;   (e) for deposit, custody, disbursement, and accounting as to corporate funds;   (f) for any other reasonable provisions customary, necessary, or convenient for the management or regulation of its corporate affairs.   (3) A provision in the bylaws for determining a quorum of members at any meeting of less than a majority of all the insurer's members is not effective unless approved by the commissioner. This subsection may not affect any other provision of law requiring the vote of a larger percentage of members for a specified purpose.   (4) The insurer shall promptly file with the commissioner a copy, certified by the insurer's secretary, of its bylaws and of every modification of or addition to the bylaws. The commissioner shall disapprove any bylaw provision that the commissioner considers unlawful, unreasonable, inadequate, unfair, or detrimental to the proper interests or protection of the insurer's members or any class of members. The insurer may not, after receiving written notice of the disapproval and during the existence of the disapproval, effectuate any bylaw provision disapproved.   History: En. Sec. 432, Ch. 286, L. 1959; R.C.M. 1947, 40-4715; amd. Sec. 1135, Ch. 56, L. 2009.
MT Code § 33-3-302 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 3. Management|33-3-302. Bylaws of stock insurer -- modification

  33-3-302. Bylaws of stock insurer -- modification. (1) A bylaw adopted at any meeting of stockholders of a domestic insurer may not be modified or revoked except by the stockholders at a subsequent meeting unless the bylaws as adopted or amended by the stockholders grant authority to the board of directors to revoke or modify bylaw provisions. The board of directors may not revoke or modify any bylaw relating to the qualifications, election, terms, or compensation of directors or to the calling or notice of meetings of stockholders. A revocation or modification of bylaws made by the directors under this provision must be presented at the next following meeting of stockholders for the information of the stockholders.   (2) The insurer shall promptly file with the commissioner a copy, certified by the insurer's secretary, of its bylaws and amended bylaws. The commissioner may disapprove any bylaw provision considered by the commissioner to be unlawful. The insurer may not, after receiving written notice of the commissioner's disapproval, enact any disapproved bylaw provision.   History: En. Sec. 433, Ch. 286, L. 1959; R.C.M. 1947, 40-4716; amd. Sec. 30, Ch. 227, L. 2001.
MT Code § 33-3-304 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 3. Management|33-3-304. Proxies -- corrupt practices

  33-3-304. Proxies -- corrupt practices. (1) Every proxy of a stockholder of an insurer, unless coupled with an interest, shall be revocable at will and this provision cannot be waived. The validity of every unrevoked proxy shall cease 11 months after the date of its execution unless some other definite period of validity is expressly provided therein, but in no event shall a proxy, unless coupled with an interest, be voted on after 3 years from the date of its execution.   (2) The revocation of a proxy shall not be effective until notice thereof has been given to the secretary of the insurer.   (3) No person shall buy or sell or barter a vote or proxy, relative to any meeting of stockholders or members of an insurer, or engage in any corrupt or dishonest practice in or relative to the conduct of any such meeting.   History: En. Secs. 435, 436, Ch. 286, L. 1959; R.C.M. 1947, 40-4718, 40-4719; amd. Sec. 23, Ch. 396, L. 2017.
MT Code § 33-3-305 (2021)
2021 Montana Code Annotated|Title 33. Insurance and Insurance Companies|Chapter 3. Domestic Stock and Mutual Insurers|Part 3. Management|33-3-305. Directors -- number and election

  33-3-305. Directors -- number and election. (1) The affairs of every domestic insurer must be managed by the number of directors fixed in the insurer's bylaws, which may not be less than 5 or more than 21 directors.   (2) Directors must be elected by the members or stockholders of a domestic insurer, except as provided in 33-3-306, at the time and place and for the terms, not exceeding 3 years, as may be provided in the insurer's bylaws. A majority of directors must be elected from the members or stockholders of the domestic insurer.   (3) The term of a director shall extend until a successor has been elected and has qualified.   History: En. Sec. 437, Ch. 286, L. 1959; R.C.M. 1947, 40-4720; amd. Sec. 11, Ch. 451, L. 1993.