09 HB
550/AP
House
Bill 550 (AS PASSED HOUSE AND SENATE)
By:
Representatives Meadows of the
5th,
Dempsey of the
13th,
Neal of the
1st,
Loudermilk of the
14th,
Burkhalter of the
50th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 33-14-76 of the Official Code of Georgia Annotated, relating
to conversion of a mutual insurer to a stock insurer, so as to provide an
additional method of payment by a mutual life insurer of the equity; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 33-14-76 of the Official Code of Georgia Annotated, relating to
conversion of a mutual insurer to a stock insurer, is amended by revising
paragraph (6) of subsection (b) as follows:
"(6)
The plan, as elected by the insurer and voted upon by the members, gives to each
policyholder of the insurer as specified in paragraph (5) of this subsection one
of the following:
(A)(i)
A preemptive right to acquire his or her proportionate part of all of the
proposed capital stock of the insurer within a designated reasonable period and
to apply upon the purchase price thereof the amount of his or her equity in the
insurer as determined in paragraph (4) of this subsection.
(ii)
Shares are so offered to policyholders at a price not greater than that to be
thereafter offered to others.
(iii)
The plan provides for payment, to each policyholder not electing to apply his or
her equity in the insurer for or upon the purchase price of stock to which
preemptively entitled, of cash in the amount of not less than 50 percent of the
amount of his or her equity not so used for the purchase of stock, which cash
payment together with stock so purchased, if any, shall constitute full payment
and discharge of the policyholder's equity as an owner of the mutual
insurer;
(B)(i)
Payment in cash to each policyholder of 100 percent of his or her equity in the
insurer, as determined in paragraph (4) of this
subsection.
(ii)
If a life insurer, payment may be provided as a paid-up life insurance policy
with a cash value equal to 100 percent of the policyholder's equity in the
insurer; provided, however, that the insurer may not impose a surrender charge
on any policyholder electing to surrender his or her paid-up life insurance
policy for its cash value; or
(C)(i)
A preemptive right to acquire a percentage of his or her proportionate part of
all of the proposed capital stock of the insurer within a designated reasonable
period and to apply upon the purchase price thereof that same percentage amount
of his or her equity in the insurer as determined in paragraph (4) of this
subsection.
(ii)
Shares are so offered to policyholders at a price not greater than that to be
thereafter offered to others.
(iii)
The plan provides for payment, to each policyholder not electing to apply his or
her equity in the insurer for or upon the purchase price of stock to which
preemptively entitled, of cash in the amount of not less than 50 percent of the
amount of his or her equity not so used for the purchase of stock, which cash
payment together with stock so purchased, if any, shall constitute full payment
and discharge of the policyholder's equity as an owner of the mutual
insurer."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.