NRS693A.580. Proposed plan of reorganization: Filing and contents; filing fee.

  A domestic mutual insurer shall file with the Commissioner for review and approval a proposed plan of reorganization that has been approved by a vote of not less than two-thirds of the members of the board of directors of the domestic mutual insurer. The proposed plan of reorganization must be accompanied by a nonrefundable fee of $2,450. The plan of reorganization must include:

      1.  An analysis of the benefits and risks of the proposed reorganization, including, without limitation, the rationale and comparative benefits and risks of converting to a domestic stock insurer pursuant to NRS 693A.400 to 693A.540, inclusive;

      2.  A statement of how the plan is fair and equitable to the policyholders;

      3.  Information sufficient to demonstrate that the financial condition of the mutual insurer will not be diminished upon reorganization;

      4.  Provisions to ensure immediate membership in the mutual insurance holding company for all existing policyholders of the mutual insurer;

      5.  Provisions for membership interests for future policyholders of the reorganized stock insurer;

      6.  Provisions to ensure that, in the event of proceedings for rehabilitation or liquidation involving a stock insurer subsidiary of the mutual insurance holding company, the assets of the mutual insurance holding company will be available to satisfy the obligations of the stock insurer subsidiary to policyholders;

      7.  Provisions for the periodic distribution of the accumulated earnings of the mutual insurance holding company;

      8.  Certified copies of the proposed articles of incorporation and bylaws of the mutual insurance holding company, intermediate stock holding company and reorganized stock insurer, or proposed amendments thereto as necessary to carry out the reorganization;

      9.  A certification that the plan of reorganization has been duly adopted by a vote of not less than two-thirds of the members of the board of directors of the mutual insurer;

      10.  A certification adopted by not less than two-thirds of the members of the board of directors of the mutual insurer that the plan of reorganization is fair and equitable to the policyholders;

      11.  The names, addresses and occupations of all persons who are or have been selected to become directors or officers of the mutual insurance holding company;

      12.  A description of the nature and content of the annual report and financial statement to be sent by the mutual insurance holding company to each policyholder;

      13.  The number of members of the board of directors of the mutual insurance holding company who are required to be policyholders;

      14.  A description of any plans for the initial sale of stock of the intermediate stock holding company or reorganized stock insurer;

      15.  A form of the proposed notice to be mailed by the mutual insurer to its policyholders as required by NRS 693A.595; and

      16.  Such additional information as the Commissioner may by regulation prescribe as necessary or appropriate for the protection of policyholders and security holders of the domestic mutual insurer or for the protection of the public interest.

      (Added to NRS by 2001, 2241)