North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-21 - Demutualization › Section 45-03-21-01 - Definitions

Current through Supplement No. 393, July, 2024
For the purposes of this chapter, the following definitions
				  shall apply:
1. "Commissioner" means the insurance commissioner.
2. "Converted insurer" means a domestic mutual insurer that
				  has completed a demutualization subject to this chapter.
3. "Converting insurer" means a domestic mutual insurer that
				  has filed, or announced its intent to file, an application for demutualization
				  under this chapter.
4. "Demutualization" means any transaction as part of which:
a. A domestic mutual insurer is converted into a stock
				  corporation;
b. A substantial portion of the ownership of a domestic
				  mutual insurer is acquired by, or merged with, another entity that is not a
				  mutual insurer; or
c. The ownership interest of the members in a domestic mutual
				  insurer is reduced substantially or eliminated.
5. "Eligible member" means a person who, at any time during
				  the one year preceding the record date, has been the owner of a policy of
				  insurance issued by the converting insurer. Unless otherwise provided in the
				  conversion plan and approved by the commissioner, a person insured under a
				  certificate issued under a group policy is an eligible member.
6. "Equitable share" means the portion allocated to an
				  eligible member of the securities or other consideration of the converting
				  insurer referred to in subsection 3 of section
				  45-03-21-05, such allocation to be
				  made in accordance with the provisions of subsection 4 of section
				  45-03-21-05.
7. "Member" means a person who is the holder of a policy or
				  contract of insurance issued by the converting insurer, including the holder of
				  a certificate issued under a group insurance policy. The term "member" does not
				  include a dependent of a certificate holder or policyholder who is insured by
				  the converting insurer solely by virtue of being such a dependent nor does it
				  include the holder of a contract issued by the converting insurer under which
				  there is not a substantial assumption of risk, such as a contract for
				  administrative services only.
8. "Membership interest" means all rights to which members of
				  the converting insurer are entitled under applicable law and under the
				  converting insurer's bylaws, articles of incorporation, insurance policies, or
				  other contracts, including the right to vote and to participate in any
				  distribution of earnings or surplus, whether or not incident to the company's
				  dissolution or liquidation.
9. "Mutual insurance holding company" means a company formed
				  under North Dakota Century Code section 26.1-12.1-02.
10. "Plan of conversion" or "conversion plan" means a plan to
				  engage or participate in a demutualization which is subject to this chapter.
11. "Record date" means the date on which the converting
				  insurer's board of directors adopts a plan of conversion or some other date
				  specified as the record date in the plan of conversion and approved by the
				  commissioner.
General Authority: NDCC 26.1-12-32
Law Implemented: NDCC
					 26.1-12-32