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Georgia State University College of Law

1994

Equity

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Full-Text Articles in Law

Insurance Domestic Stock And Mutual Insurers: Provide For The Conversion Of A Mutual Insurer To A Stock Insurer; Authorize Domestic Stock Insurers To Issue Preferred Stock, Jonathan M. Adelman Sep 1994

Insurance Domestic Stock And Mutual Insurers: Provide For The Conversion Of A Mutual Insurer To A Stock Insurer; Authorize Domestic Stock Insurers To Issue Preferred Stock, Jonathan M. Adelman

Georgia State University Law Review

Act 781 relaxes the requirements for a mutual stock insurer wishing or planning to convert to a domestic stock insurer. The Act decreases the percentage of approval required from policyholders for successful conversion. Further, the Act mandates giving policyholders a choice between participating in a conversion or receiving 100% of their equity in cash. Also, the Act allows a converted insurer's corporate existence to continue running without refiling a corporate charter. Act 977 authorizes domestic stock insurers to issue preferred stock.