{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-2130","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-2130","heading":"Converting mutual insurer","body":"A. A domestic mutual insurer may become a domestic stock\n\ninsurer pursuant to such plan and procedure as is approved in\n\nadvance by the Insurance Commissioner.\n\nB. The Commissioner shall not approve any such plan or\n\nprocedure unless:\n\n1. Equitable to the insurer's members;\n\n2. Subject to approval by vote of not less than three-fourths\n\n(3/4) of the insurer's current members voting thereon in person, by\n\nproxy, or by mail at a meeting of members called for the purpose\n\npursuant to such notice and procedure as may be approved by the\n\nCommissioner;\n\n3. The equity of each policyholder in the insurer is\n\ndeterminable under a fair formula approved by the Commissioner,\n\nwhich such equity shall be based upon not less than the insurer's\n\nentire surplus (after deducting contributed or borrowed surplus\n\nfunds) plus a reasonable present equity in its reserves and in all\n\nnonadmitted assets;\n\n4. The policyholders entitled to participate in the purchase of\n\nstock or distribution of assets shall include all current\n\npolicyholders and all existing persons who had been a policyholder\n\nof the insurer within three (3) years prior to the date such plan\n\nwas submitted to the Commissioner;\n\n5. The plan gives to each policyholder of the insurer as\n\nspecified in paragraph 4 of this subsection, a preemptive right to\n\nacquire his proportionate part of all of the proposed capital stock\n\nof the insurer, within a designated reasonable period, and to apply\n\nupon the purchase thereof the amount of his equity in the insurer as\n\ndetermined under paragraph 3, above;\n\n6. Shares are so offered to policyholders at a price not\n\ngreater than to be thereafter offered to others nor at more than\n\ndouble the par value of such shares;\n\n7. The plan provides for payment to each policyholder not\n\nelecting to apply his equity in the insurer for or upon the purchase\n\nprice of stock to which preemptively entitled, of cash in the amount\n\nof not less than fifty percent (50%) of the amount of his equity not\n\nso used for the purchase of stock, and which cash payment together\n\nwith stock so purchased, if any, shall constitute full payment and\n\ndischarge of the policyholder's equity as an owner of such mutual\n\ninsurer; and\n\n8. The plan, when completed, would provide for the converted\n\ninsurer paid-in capital stock in an amount not less than the minimum\n\npaid-in capital required of a domestic stock insurer transacting\n\nlike kinds of insurance, together with surplus funds in amount not\n\nless than one-half (1/2) of such required capital.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"c14c3a2c61ca2134ec6a4766cf2615dd949b3b88ea6e0b8785d766c187a23917","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-2129","next":"us-ok/okla.-stat.-tit.-36-36-2132"},"notice":"GroundRules: Original legal text. Not legal advice."}