Texas Insurance Code 826.061 – Alternate Conversion Plan
(a) The board of directors may adopt a conversion plan that does not rely in whole or in part on the issuance of nontransferable subscription rights to members to purchase stock of the resulting company if the commissioner determines that the plan:
(1) complies with this chapter;
(2) is fair and equitable; and
(3) permits the resulting company to satisfy the requirements in effect on the date of the determination for a certificate of authority applicable to a domestic stock insurance company.
(b) The conversion plan may:
(1) include the merger of a domestic mutual insurance company with a domestic or foreign stock insurance company;
(2) provide for issuing stock, cash, or other consideration to members instead of subscription rights;
(3) provide for the formation of a mutual holding company under Subchapter E; or
(4) establish another plan containing other provisions approved by the commissioner.
Terms Used In Texas Insurance Code 826.061
- 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
(c) The commissioner may retain, at the converting company’s expense, a qualified expert who is not a member of the commissioner’s staff to assist in reviewing whether the conversion plan meets the requirements for approval by the commissioner.