Texas Insurance Code 885.457 – Completion and Legal Effect of Conversion to Stock Company
(a) The conversion of a fraternal benefit society to an incorporated stock company is complete when the society has:
(1) complied with this subchapter and other state law regulating the incorporation of a life insurance company; and
(2) received from the commissioner its charter or certificate of authority to transact business as an incorporated stock company.
(b) A fraternal benefit society that converts to an incorporated stock company:
(1) is considered by law to have each right, privilege, power, or authority of any other stock corporation organized for engaging in the business of life insurance in this state;
(2) is subject to laws applicable to a stock corporation organized under Chapter 841 for engaging in the business of life insurance in this state;
(3) is considered by law to be a continuation of the business of the fraternal benefit society on the formation of the new company or amendment of its former charter; and
(4) succeeds to and is invested with each right, privilege, or franchise and all property of the former society, including debts due on any account and all choses in action.
Terms Used In Texas Insurance Code 885.457
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Property: means real and personal property. See Texas Government Code 311.005
(c) On conversion of a fraternal benefit society to an incorporated stock company, the title to any real estate by deed or otherwise vested in the society vests in the company, and the title is not in any way impaired because of the conversion.