reglab/housing_qa huggingface dataset:
18 DE Code § 4970. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4970. Finding; purpose.

§ 4970. Finding; purpose. (a) It is determined and declared as a matter of legislative finding that policyholders of a mutual insurer have contractual rights to insurance coverage and certain membership rights consisting principally of the right to elect directors of a mutual insurer, the right to vote on certain fundamental transactions undertaken by a mutual insurer, and the right to share in surplus in the event of a solvent liquidation of a mutual insurer. It is determined and declared that the membership rights of policyholders in a domestic mutual company existing as of October 17, 2010, who vote to make such mutual company subject to this chapter, or policyholders of a foreign mutual insurer who vote to redomesticate to Delaware pursuant to § 4974 of this title, are not equivalent to an ownership interest in such mutual insurer and that, in connection with the mutual to stock conversion of a mutual insurer, the grant to policyholders of a first priority right to purchase stock in the converting company or a holding company for such converting company is adequate compensation for the relinquishment of the membership rights of a policyholder. The General Assembly determines that it is desirable to provide for the conversion of a mutual insurer from the mutual form to the stock form in a manner similar to the manner in which mutual savings institutions convert from mutual to stock form under federal law and regulation. (b) It is further determined and declared that the purpose and policy of this chapter shall be:  (1) To provide for the mutual to stock conversion of a mutual insurer in a manner consistent with the manner in which a mutual savings institution converts from mutual to stock form under federal law and regulation; and (2) To facilitate the recapitalization of the insurance industry nationally by establishing a proven method of capital formation for insurers that elect to domicile in Delaware.77 Del. Laws, c. 466, §  2;
18 DE Code § 4971. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4971. Short title of chapter.

§ 4971. Short title of chapter. This chapter shall be known and may be cited as the “Delaware Insurance Company Mutual-to-Stock Conversion Act.” 77 Del. Laws, c. 466, §  2;
18 DE Code § 4974. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4974. Redomestication and conversion.

§ 4974. Redomestication and conversion. (a) A foreign mutual insurer or foreign mutual holding company that has filed an application for redomestication may file an application for conversion under this chapter promptly after completion of the redomestication or upon such earlier date as the Commissioner may permit, but in no event prior to the approval of the redomestication by the members of the foreign mutual insurer or foreign mutual holding company if such a member vote is required under the laws of the state of domicile of the foreign mutual insurer or foreign mutual holding company. A redomestication application shall contain such information as the Commissioner may require. If the redomestication is approved by the state of domicile of the foreign mutual insurer or foreign mutual holding company and the members of the foreign mutual insurer or foreign mutual holding company, to the extent required, then no redomestication application of a foreign mutual insurer or foreign mutual holding company will be denied solely because the applicant has indicated its intention to avail itself of the provisions of this chapter. (b) In addition to any requirements imposed by the existing state of domicile with respect to approval of redomestication by its voting members, a foreign mutual insurer that files an application for redomestication under this section also shall provide to its voting members a comparison of the method of mutual to stock conversion in its existing state of domicile and the methods of mutual to stock conversion established by this chapter. (c) Any order approving the redomestication of a foreign mutual insurer or foreign mutual holding company may contain such terms and conditions as the Commissioner shall require. (d) Any foreign mutual insurer or foreign mutual holding company that redomesticates under the provisions of this section, within 10 days of the date of redomestication, shall adopt resolutions ratifying any previously adopted plan of conversion and file such resolutions as an amendment to the application for conversion. The Commissioner may deem any failure to file such ratifying resolutions as a withdrawal of the application for conversion. (e) Nothing contained in this chapter is intended or shall be deemed to supersede or conflict with the requirements of the state of domicile of any foreign mutual insurer or foreign mutual holding company. (f) Except to the extent specifically provided by this section, a plan of conversion shall be adopted as required by § 4973 of this title and shall be consistent with the requirements of §§ 4975, 4976, and 4977, or of § 4978, of this title. 77 Del. Laws, c. 466, §  2;  78 Del. Laws, c. 313, §  3;
18 DE Code § 4979. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4979. Effective date of plan.

§ 4979. Effective date of plan. A plan is effective when the Commissioner has approved the plan, the voting members have approved the plan and adopted the certificate of incorporation of the converted stock company, and the certificate of incorporation is filed in the office of the Secretary of State of this State. 77 Del. Laws, c. 466, §  2;
18 DE Code § 4980. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4980. Rights of members whose policies are issued after adoption of plan and before effective date.

§ 4980. Rights of members whose policies are issued after adoption of plan and before effective date. (a) All members whose policies are issued after the proposed plan has been adopted by the governing body and before the effective date of the plan shall be sent a written notice regarding the plan upon issuance of such policy. (b) A member of a life or health insurance company entitled to be sent the notice described in subsection (a) of this section is entitled to rescind the member's policy and receive a full refund of any amounts paid for the policy or contract within 10 days after such member has received the notice. Except as provided in subsection (c) of this section, each member of a property or casualty insurance company entitled to receive the notice provided for in subsection (a) of this section shall be advised of the member's right of cancellation and to a pro rata refund of unearned premiums. (c) No member of a life or health insurance company, or property or casualty insurance company, who has made or filed a claim under such member's insurance policy shall be entitled to any right to receive any refund under subsection (b) of this section. No person who has exercised the rights provided by subsection (b) of this section shall be entitled to make or file any claim under such person's insurance policy. 77 Del. Laws, c. 466, §  2;
18 DE Code § 4981. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4981. Corporate existence.

§ 4981. Corporate existence. (a) On the effective date of the conversion, the corporate existence of the mutual company continues in the converted stock company. On the effective date of the conversion, all the assets, rights, franchises, and interests of the mutual company or the mutual holding company in and to every species of property, real, personal, and mixed, and any accompanying things in action, are vested in the converted stock company without any deed or transfer and the converted stock company assumes all the obligations and liabilities of the mutual company or the mutual holding company. (b) Unless otherwise specified in the plan of conversion, the persons who are directors and officers of the mutual company or the mutual holding company on the effective date of the conversion shall serve as directors and officers of the converted stock company until new directors and officers of the converted stock company are elected pursuant to the certificate of incorporation and bylaws of the converted stock company. 77 Del. Laws, c. 466, §  2;  78 Del. Laws, c. 313, §  6;
18 DE Code § 4982. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4982. Conflict of interest.

§ 4982. Conflict of interest. (a) A director, officer, agent, or employee of the mutual company shall not receive any fee, commission, or other valuable consideration, other than such person's usual regular salary or compensation, for aiding, promoting, or assisting in a conversion under this chapter, except as provided for in the plan approved by the Commissioner. This provision does not prohibit the payment of reasonable fees and compensation to attorneys, accountants, financial advisors, and actuaries for services performed in the independent practice of their professions, even if the attorney, accountant, financial advisor, or actuary is also a director or officer of the mutual company. (b) For a period of 2 years after the effective date of the conversion, no converted stock company shall implement any nontax-qualified stock benefit plan unless the plan is approved by a majority of votes cast at a duly-convened meeting of shareholders held not less than 6 months after the effective date of the conversion. (c) All the costs and expenses connected with a plan of conversion shall be paid for or reimbursed by the mutual company or the converted stock company. However, if the plan provides for participation by another corporation or stock company in the plan pursuant to § 4975(a)(3)a. of this title, the corporation or stock company may pay for or reimburse all or a portion of the costs and expenses connected with the plan. 77 Del. Laws, c. 466, §  2;
18 DE Code § 4983. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4983. Failure to give notice.

§ 4983. Failure to give notice. If the mutual company complies substantially and in good faith with the notice requirements of this chapter, the mutual company's failure to send a member the required notice does not impair the validity of any action taken under this chapter. 77 Del. Laws, c. 466, §  2;
18 DE Code § 4984. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4984. Limitation on actions.

§ 4984. Limitation on actions. Any action challenging the validity of or arising out of acts taken or proposed to be taken under this chapter shall be commenced no later than the latter of:  (1) Sixty days after the approval of the plan by the Commissioner; or (2) Thirty days after notice of the meeting of voting members to approve the plan of conversion is first mailed or delivered to voting members or posted on the mutual company's website.77 Del. Laws, c. 466, §  2;
18 DE Code § 4985. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4985. Mutual company insolvent or in hazardous financial condition.

§ 4985. Mutual company insolvent or in hazardous financial condition. (a) If a mutual company seeking to convert is insolvent or is in hazardous financial condition according to information supplied in its most recent annual or quarterly statement filed with the Department or as determined by a financial examination performed by the Department pursuant to § 318 of this title, the requirements of this chapter, including notice to and policyholder approval of the plan of conversion, may be waived at the discretion of the Commissioner, if requested by the mutual company. If a waiver under this section is ordered by the Commissioner, the mutual company shall specify in its plan of conversion:  (1) The method and basis for the issuance of the converted stock company's shares of its capital stock to an independent party in connection with an investment by the independent party in an amount sufficient to restore the converted stock company to a sound financial condition. (2) That the conversion shall be accomplished without granting subscription rights or other consideration to the past, present, or future policyholders. (b) Nothing contained in this section shall alter or limit the authority of the Commissioner under any of the provisions of law, including, but not limited to, Chapter 59 of this title. 77 Del. Laws, c. 466, §  2;
18 DE Code § 4986. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4986. Rules and regulations.

§ 4986. Rules and regulations. The Commissioner may promulgate rules and regulations to administer and enforce this chapter. 77 Del. Laws, c. 466, §  2;
18 DE Code § 4987. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4987. Laws applicable to converted stock company.

§ 4987. Laws applicable to converted stock company. (a) No mutual company shall be permitted to convert under this chapter if, as a direct result of the conversion, any person or any affiliate thereof acquires control of the converted stock company, unless that person and such person's affiliates comply with the provisions of § 5003 of this title. For purposes of this subsection, “control” shall have the meaning given to such term in § 5001 of this title. (b) Except as otherwise specified in this chapter, a stock company converted under this chapter shall have and may exercise all the rights and privileges and shall be subject to all of the requirements and regulations imposed on stock insurers under this chapter and any other laws of this State relating to the regulation and supervision of insurers, but it shall exercise no rights or privileges which other stock insurers may not exercise. 77 Del. Laws, c. 466, §  2;
18 DE Code § 4988. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4988. Commencement of business as a stock insurer.

§ 4988. Commencement of business as a stock insurer. No mutual company shall have the power to engage in the business of insurance as a stock company until it complies with all provisions of this chapter. 77 Del. Laws, c. 466, §  2;
18 DE Code § 4989. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4989. Amendment of policies.

§ 4989. Amendment of policies. A mutual company, by endorsement or rider approved by the Commissioner and sent to the policyholder, may simultaneously with or at any time after the adoption of a plan of conversion amend any outstanding insurance policy for the purpose of extinguishing the right of the holder of any such policy to share in the surplus of the mutual company. However, this amendment shall be null and void if the plan of conversion is not submitted to the Commissioner or, if submitted, is disapproved by the Commissioner or, if approved by the Commissioner, is not approved by the eligible members on or before the first anniversary of its approval by the Commissioner. 77 Del. Laws, c. 466, §  2;
18 DE Code § 4990. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4990. Prohibition on acquisitions of control.

§ 4990. Prohibition on acquisitions of control. Except as otherwise specifically provided in § 4975 of this title, from the date a plan of conversion is adopted by the governing body of a mutual company until 3 years after the effective date of the plan of conversion, no person shall directly or indirectly offer to acquire, make any announcement to acquire or acquire in any manner, including making a filing with the Department for such acquisition under a statute or regulation of this State, the beneficial ownership of 10% or more of a class of a voting security of the converted stock company or of a person which controls the voting securities of the converted stock company, unless the converted stock company or a person who controls the voting securities of the converted stock company consents to such acquisition and such acquisition is otherwise approved by the Commissioner. 77 Del. Laws, c. 466, §  2;
18 DE Code § 4991. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 49A. Delaware Insurance Company Mutual-to-Stock Conversion Act|§ 4991. Applicability to existing mutual insurers.

§ 4991. Applicability to existing mutual insurers. (a) Except as provided in subsection (b) of this section, this chapter shall apply to all mutual insurers. (b) Section 4933 of this title as in effect prior to October 17, 2010, is hereby repealed, except as set forth in the next sentence. Section 4933 of this title as in effect on October 16, 2010, shall apply to any mutual insurer that is a domestic mutual company as of such date that has not submitted a written notice to the Commissioner under subsection (c) of this section. (c) Any mutual insurer that is a domestic mutual company as of the date immediately prior to the enactment of this chapter that otherwise would be subject to the application of this chapter, § 4933 of this title as in effect on such date may elect to become subject to the application of this chapter instead by submitting to the Commissioner a written notice to that effect. 77 Del. Laws, c. 466, §  2;
18 DE Code § 5002. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 50. Insurance Holding Company System Registration|§ 5002. Subsidiaries of insurers.

§ 5002. Subsidiaries of insurers. Any domestic insurer, either by itself or in cooperation with 1 or more persons, may organize or acquire 1 or more subsidiaries as otherwise permitted under this title. Such subsidiaries may conduct any kind of business or businesses and their authority to do so shall not be limited by reason of the fact that they are subsidiaries of a domestic insurer. 68 Del. Laws, c. 325, §  1;  79 Del. Laws, c. 388, §  1;
18 DE Code § 5008. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 50. Insurance Holding Company System Registration|§ 5008. Rules and regulations.

§ 5008. Rules and regulations. The Commissioner may, upon notice and opportunity for all interested persons to be heard, issue such rules, regulations and orders as shall be necessary to carry out the provisions of this chapter. 68 Del. Laws, c. 325, §  1;
18 DE Code § 5011. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 50. Insurance Holding Company System Registration|§ 5011. Receivership.

§ 5011. Receivership. Whenever it appears to the Commissioner that any person has committed a violation of this chapter which so impairs the financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, creditors, shareholders or the public, then the Commissioner may proceed as provided in Chapter 59 of this title to take possession of the property of such domestic insurer and to conduct the business thereof. 68 Del. Laws, c. 325, §  1;
18 DE Code § 5012. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 50. Insurance Holding Company System Registration|§ 5012. Recovery.

§ 5012. Recovery. (a) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurer:  (1) From any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions (other than distributions of shares of the same class of stock) paid by the insurer on its capital stock; or (2) Any payment in the form of a bonus, termination settlement or extraordinary lump sum salary adjustment made by the insurer or its subsidiary(s) to a director, officer or employee. Where the distribution or payment pursuant to paragraph (a)(1) or (2) of this section is made at any time during the 1 year preceding the petition for liquidation, conservation or rehabilitation, as the case may be, subject to the limitations of subsections (b), (c) and (d) of this section. (b) No such distribution shall be recoverable if the parent or affiliate shows that when paid, such distribution was lawful and reasonable, and that the insurer did not know and could not reasonably have known that such distribution might adversely affect the ability of the insurer to fulfill its contractual obligations. (c) Any person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate at the time such distributions were paid shall be liable up to the amount of distributions or payments under subsection (a) of this section such person received. Any person who otherwise controlled the insurer at the time such distributions were declared shall be liable up to the amount of distributions the person would have received if they had been paid immediately. If 2 or more persons are liable with respect to the same distributions, they shall be jointly and severally liable. (d) The maximum amount recoverable under this subsection shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds. (e) To the extent that any person liable under subsection (c) of this section is insolvent or otherwise fails to pay claims due from it pursuant to such subsection, its parent corporation or holding company or person who otherwise controlled it at the time the distribution was paid, shall be jointly and severally liable for any resulting deficiency in the amount recovered from such parent corporation or holding company or person who otherwise controlled it. 68 Del. Laws, c. 325, §  1;  70 Del. Laws, c. 186, §  1;
18 DE Code § 5013. (2021)
2021 Delaware Code|Title 18 - Insurance Code|Chapter 50. Insurance Holding Company System Registration|§ 5013. Revocation, suspension or nonrenewal of insurer's license.

§ 5013. Revocation, suspension or nonrenewal of insurer's license. Whenever it appears to the Commissioner that any person has committed a violation of this chapter which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the Commissioner may, after giving notice and an opportunity to be heard, determine to suspend, revoke or refuse to renew such insurer's license or authority to do business in this State for such period as the Commissioner finds is required for the protection of policyholders or the public. Any such determination shall be accompanied by specific findings of fact and conclusions of law. 60 Del. Laws, c. 616, §  8;  68 Del. Laws, c. 325, §  1;  70 Del. Laws, c. 186, §  1;