Utah Code 31A-9-501. Merger and consolidation of fraternals
Current as of: 2024 | Check for updates
|
Other versions
(1) Subject to compliance with Chapter 16, Insurance Holding Companies, any two or more domestic fraternals may merge or consolidate under the provisions of Subsections (3) and (4).
Terms Used In Utah Code 31A-9-501
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Certificate: means evidence of insurance given to:(23)(a) an insured under a group insurance policy; or(23)(b) a third party. See Utah Code 31A-1-301
- commissioner of insurance: means Utah's insurance commissioner. See Utah Code 31A-1-301
- Contract: A legal written agreement that becomes binding when signed.
- 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
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Insurance: includes :
(96)(b)(i) a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;(96)(b)(ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and(96)(b)(iii) a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Participating: means a plan of insurance under which the insured is entitled to receive a dividend representing a share of the surplus of the insurer. See Utah Code 31A-1-301
(2) Subject to compliance with Chapter 16, Insurance Holding Companies, any two or more domestic and nondomestic fraternals may merge or consolidate under the provisions of Subsection (5).(3) In addition to complying with Chapter 16, Insurance Holding Companies, the supreme governing body of each domestic fraternal proposing to merge or consolidate shall:(3)(a) at least 60 days prior to the proposed action, submit the text of the proposed contract to its members as provided in Subsection 31A-9-213(4);(3)(b) approve the proposed consolidation or merger by a two-thirds vote; and(3)(c) file with the commissioner:(3)(c)(i) a certified copy of the written contract containing in full the terms and conditions of the consolidation or merger;(3)(c)(ii) a sworn statement by the president and secretary or corresponding officers of each fraternal showing the financial condition of each on a date fixed by the commissioner, but no earlier than the December 31 of the year preceding the proposed contract; and(3)(c)(iii) evidence of compliance with Subsections (3)(a) and (b).(4) The commissioner shall issue a certificate approving the merger or consolidation, upon a finding that all of the following conditions exist:(4)(a) The contract conforms to the provisions of this chapter.(4)(b) The parties to the proposed contract have complied with the provisions of Subsection (3).(4)(c) The proposed contract is equitable to the members of each fraternal.(5) When a nondomestic fraternal is a party to the proposed contract, the parties shall follow the procedure for domestic fraternals under Subsections (3) and (4). However, the commissioner may not issue a certificate of compliance until the parties file a certificate that the proposed contract has been approved in the manner provided by the laws of the jurisdiction under which the fraternal is incorporated, or, if those laws contain no procedure for approval, that the proposed contract has been approved by the commissioner of insurance for that jurisdiction.(6) The merger or consolidation is effective when the commissioner issues a certificate of approval.(7) When the merger or consolidation is effective, the surviving or new fraternal has all the assets and is liable for all of the obligations of each of the participating fraternals.