Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 13 - MISCELLANEOUS INSURERS AND OTHER REGULATED ENTITIES › Subchapter A - STATEWIDE MUTUAL ASSESSMENT COMPANIES, LOCAL MUTUAL AID ASSOCIATIONS, AND BURIAL ASSOCIATIONS › Section 13.25 - Conversion or Change of Name From a Burial Association to a Local Mutual Aid Association

Current through Reg. 49, No. 28; July 12, 2024
(a) The name of a
				  new association must be submitted and reserved before making any definite
				  arrangements for conversion. To convert a burial association or change the name
				  of a burial association or local mutual aid association, the constitution and
				  bylaws and articles of association must be amended in accordance with the
				  Insurance Code, Article 14.05, which reads substantially as follows: "Bylaws of
				  any association may be amended by a majority of the members of the association
				  present when ratified by the board of directors, but only at meetings called
				  for that purpose, or at regular meetings. Amendments to the bylaws shall not be
				  effective until approved by the commissioner of insurance. Notices of all
				  meetings, whether regular or special, at which amendments to bylaws will be
				  considered, must be mailed to all members. Such notices must contain full
				  copies of the proposed changes in the bylaws and fair explanation of the intent
				  and effect thereof."
(b) To avoid
				  the necessity of declining to approve the purported amendments because of
				  deficiency in the notice, it is suggested that such notices be submitted to the
				  commissioner of insurance before they are mailed to the members.
(c) After the meetings, the following must be
				  submitted to the commissioner of insurance:
(1) two copies of the printed notice to
				  members accompanied by an affidavit of the secretary that the notice was mailed
				  by first class mail to every member;
(2) two duly signed copies of the minutes of
				  the membership meeting reciting the action taken;
(3) two duly signed copies of the minutes of
				  the meeting of the board of directors ratifying the action taken by the
				  membership;
(4) two copies of the
				  amendment to the constitution and bylaws duly certified by the president and
				  secretary;
(5) two copies of the
				  amendment to the articles of association duly certified by the president and
				  secretary:
(A) if the change is a change of
				  name only, two copies of the endorsements or certificates of name change which
				  are to be sent to each member stating the change in the name;
(B) if the change is a conversion from a
				  burial association to a local mutual aid association, two copies of the
				  assumption certificate which is to be issued by the converted company, and the
				  assumption certificate should provide, in the event the burial policy does not
				  have a designated beneficiary, an automatic beneficiary, and further grant to
				  the policyholder the right to thereafter change the automatically designated
				  beneficiary;
(6) $1.00
				  for the amended certificate of authority in the new name of the
				  association;
(7) an application for
				  amended certificate of authority;
(8) current certificate of authority must be
				  surrendered for cancellation;
(9)
				  two copies each of tentative drafts of policy form, application form,
				  reinstatement application form, and rate schedule;
(10) bond; and
(11) statutory deposit.