CHAPTER 13. Voluntary Mutualization of Incorporated Life and Life and Disability Insurers Having a Capital Stock and Issuing Nonassessable Policies on a Reserve Basis [11525. - 11533.]
Chapter 13 added by Stats. 1935, Ch. 530.
§§ 11525–11533 · 18 sections
ARTICLE 1. Authority and Requirements to Mutualize §§ 11525–11528 · 4 sections
- § 11525 A solvent domestic incorporated insurer having a paid-in capital represented by outstanding shares of capital stock and issuing, on a reserve basis,…
- § 11526 Such plan shall include appropriate proceedings for amending the insurer’s articles of incorporation to give effect to the acquisition, by said insurer, for…
- § 11527 The commissioner shall examine the plan submitted under subdivision (c) of Section 11526. The commissioner shall not approve the plan unless in the…
- § 11528 The election prescribed by subdivision (d) of Section 11526, shall be called by the board of directors or the president and every policyholder of the class or…
ARTICLE 2. Execution of Plan §§ 11529–11533 · 14 sections
- § 11529 In carrying out any such plan, the insurer may acquire any shares of its own stock by gift, bequest or purchase. Any shares so acquired shall, unless as a…
- § 11529.5 Any such plan of mutualization may provide for the creation of a voting trust under a trust agreement for the holding and voting by three or more trustees of…
- § 11530 Every payment for the acquisition of any shares of the capital stock of such insurer, the purchase price of which is not fixed by such plan, shall be subject…
- § 11531 The trustees referred to in section 11529 shall file with such insurer and with the commissioner a verified acceptance of their appointments and verified…
- § 11532 Such insurer, after mutualization, shall be a continuation of the original insurer, and such mutualization shall not affect such insurer’s certificate of…
- § 11532.1 An annual meeting of members shall be held at 10 o'clock in the morning of the fourth Tuesday of March of each year at the principal office of the insurer,…
- § 11532.2 Special meetings of the members, for any purpose or purposes whatsoever, may be called at any time by the president, or by the board of directors, or by one or…
- § 11532.3 Notice of all meetings of members whether annual or special shall be given in writing to the members entitled to vote by the secretary, or an assistant…
- § 11532.4 The presence in person or by proxy of 5 per cent of the members entitled to vote at any meeting shall constitute a quorum for the transaction of business,…
- § 11532.5 Each such member shall have one vote at any meeting of members regardless of the number of policies or the amount of insurance that such member holds and…
- § 11532.6 The directors of the insurer in office at the time the insurer is mutualized as provided in this chapter shall continue in office until the first annual…
- § 11532.7 The articles of incorporation or the bylaws may provide that the directors may be divided into two or more classes whose terms of office shall expire at…
- § 11532.8 All insurers mutualized under the provisions of this chapter shall be subject to all other applicable provisions of this code and to the provisions of the…
- § 11533 The provisions of Article 8 of Chapter 1 of Part 2 of Division 1 of this code shall not apply to any of the following: (a) Shares of the capital stock of such…