Adds new Part 8, Mutual Insurance Holding Companies, to Article 10 of GS Chapter 58 as the title indicates. Provides definitions for terms as they apply in new Part 8. Provides general provisions regarding the reorganization of a domestic mutual insurance company, upon approval by the Commissioner of Insurance (Commissioner), into a mutual insurance holding company (holding company) and concerning the functional, organizational, and operational structure of an insurance holding company. Requires that an application for reorganization be designated as either a limited application, or a standard application. Directs that applications be filed in triplicate with the Commissioner and prescribes the information to be contained in the application. Provides additional specifications regarding the application process.
Details the required provisions for a limited application plan of reorganization and for a standard application plan of reorganization. Specifies the powers of the Commissioner with regards to the mutual insurance holding company, directing that the Commissioner is to retain jurisdiction at all times over the mutual insurance holding company, its intermediate holding company subsidiaries with stock insurance subsidiaries, and its stock insurance company subsidiaries. Authorizes the Commissioner to approve, conditionally approve, or deny an application following any public comment period or hearing under GS 58-10-285.
Provides guidelines and criteria regarding (1) specific financial requirements applicable to a holding company, (2) the reorganization of a domestic mutual insurer with a holding company, and (3) mergers of holding companies. Prohibits any stock offering by a holding company, an insurance company subsidiary of a holding company, an intermediate holding company subsidiary of a holding company, or an insurance company subsidiary of an intermediate holding company subsidiary to a holding company without the prior approval of the Commissioner. Provides additional specifications regarding the content of applications for stock offerings and additional requirements regarding a planned stock offering. Provides for the regulation of the holding company, requiring all material transactions as defined in Part 3 of Article 10 of GS Chapter 58 to be approved by a majority of the board of directors of the holding company as being fair and reasonable. Also provides for the reporting of stock ownership and transactions.