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Bill Detail: HB20-1091

 

Title Divide Insurer Into Resulting Insurers
Status House Committee on Business Affairs & Labor Refer Amended to Appropriations (03/10/2020)
Bill Subjects
  • Health Care & Health Insurance
  • Insurance
House Sponsors M. Snyder (D)
Senate Sponsors A. Williams (D)
House Committee Business Affairs and Labor
Senate Committee
Date Introduced 01/10/2020
Description

The bill states that a domestic stock insurer (dividing insurer) may
divide into 2 or more resulting insurers pursuant to a plan of division. A
plan of division must include:
  • The name of the dividing insurer;
  • The name of each resulting insurer created by the proposed
division and, for each resulting insurer, a copy of proposed

articles of incorporation and proposed bylaws;
  • The manner of allocating assets and liabilities, including
policy liabilities, between or among all resulting insurers;
  • The manner of distributing shares in the resulting insurers
to the dividing insurer or the dividing insurer's
shareholders;
  • A reasonable description of all liabilities and all assets that
the dividing insurer proposes to allocate to each resulting
insurer, including the manner by which the dividing insurer
proposes to allocate all reinsurance contracts;
  • All terms and conditions required by the laws of this state
and the articles of incorporation and bylaws of the dividing
insurer; and
  • All other terms and conditions required by the division.
A plan of division must include additional provisions, the nature
of which depends on whether the dividing insurer will survive the
division.
A dividing insurer may not file a plan of division with the
commissioner of insurance (commissioner) until the plan of division has
been approved in accordance with all provisions of the dividing insurer's
articles of incorporation and bylaws. After a dividing insurer approves a
plan of division, the dividing insurer shall file the plan of division with
the commissioner. The commissioner shall approve the plan of division
if, after considering certain criteria, the commissioner finds that certain
requirements are met. If the commissioner approves a dividing insurer's
plan of division, an officer or duly authorized representative of the
dividing insurer shall sign a certificate of division that sets forth certain
information concerning the division.
The bill establishes procedures for amending and abandoning plans
of division.
The bill provides for the protection of confidential information,
documents, and materials that are submitted to, obtained by, or disclosed
to the commissioner in connection with a plan of division or in
contemplation of a plan of division.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (02/14/2020) (most recent)  
Additional Bill Documents Bill Documents
Including:
  • Past bill versions
  • Past fiscal notes
  • Committee activity and documents
  • Bill History
 
Lobbyists Lobbyists
Audio  
Votes House and Senate Votes
Vote Totals Vote Totals by Party
 
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