Texas Insurance Code 826.102 – Approval of Plan by Commissioner
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(a) The commissioner shall approve a conversion plan if the commissioner determines that:
(1) the plan complies with this chapter;
(2) the plan’s method of allocating subscription rights or other value is fair and equitable; and
(3) the resulting company would satisfy the requirements applicable to a domestic stock insurance company for a certificate of authority on the date of the determination.
(b) Except as otherwise provided by this section, the commissioner shall approve or disapprove a conversion plan not later than the 60th day after the first day on which all the documents required under § 826.101 are filed with the commissioner.
Terms Used In Texas Insurance Code 826.102
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The commissioner may extend the time for decision by an additional 30 days on written notice to the converting company. Except as provided under Subsection (e), the commissioner may not extend the time for decision beyond that 30-day period.
(d) The commissioner shall immediately give written notice to the converting company of the commissioner’s decision and, if the commissioner disapproves the plan, a detailed statement of the reasons for the disapproval.
(e) The commissioner may retain, at the mutual insurance company’s expense, a qualified expert who is not a member of the commissioner’s staff to assist the commissioner in reviewing the conversion plan and the valuation required under § 826.054(a). If the commissioner retains a qualified expert under this subsection, the commissioner may extend the period for decision by an additional 60 days beyond the initial 60-day period.
(f) After giving written notice to the converting company and other interested persons, the commissioner may hold a hearing on whether the conversion plan complies with this chapter. The company and any other interested person have the right to appear at the hearing. Notice to interested persons who have not filed an appearance in the matter may be made through publication in the Texas Register.