MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Insurance

By: Senator(s) Kirby, White (5th), White (29th), Johnson (19th), Scoper

AN ACT TO AUTHORIZE MISSISSIPPI MUTUAL INSURANCE COMPANIES TO MERGE WITH FOREIGN AND/OR OTHER DOMESTIC MUTUAL INSURANCE COMPANIES; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) A domestic mutual insurance may effect a merger with one or more domestic mutual insurance companies, or with one or more foreign mutual insurance companies, if such merger is authorized by the laws of the state under which each such foreign company is organized.

(2) The Commissioner of Insurance shall review and approve the plan to merge the mutual insurance companies prior to submission of the plan to the policyholders for their consideration and vote. The plan must be approved by two-thirds (2/3) of those policyholders who vote in person or by proxy at a duly called policyholder's meeting to consider the plan of merger. The commissioner may require mutual companies to comply with appropriate requirements as that analogous to those of a stock company merger under Sections 83-6-24 and 83-19-99, Mississippi Code of 1972.

SECTION 2. This act shall take effect and be in force from and after July 1, 1998.