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HF 2785 House Long Description

hf2763 FIRST ENGROSSMENT Mutual insurance holding company authorized to reorganized into a stock company, ceding transaction accounting provisions modified, and workers' compensation rating plan threshold calculations modified. Section 1: Related terms defined. Subdivision 2: Mutual insurance companies authorized to become corporations or to reorganize into stock companies. Subd. : Plan of conversion adopted. Subd. 4: Filing of plan procedures provided. Subd. 5: Plan approval procedures provided. Subd. 6: Converting mutual holding company filing procedures clarified and effective date provided. Subd. 7: Conforming changes. Subd. 8: Share conversion procedure provided. Subd. 9: Distribution of distributable net worth procedure provided. Subd. 10: Subscription rights clarified. Subd. 11: Optional provisions provided. Subd. : Alternative plan of conversion provided. Subd. 13: All membership interests in converting mutual company extinguished on effective date of a conversion.Subd. 14-16: No change.Subd. 16a: Continuance of participating policy dividends provided.Subd. 17: Supervisory concerns provided.Subd. 18: Postconversion acquisition dates modified. Sec. 2: Actual unearned premium reserve no longer required to be carried as a liability. Sec. 3: Written workers' compensation generated from other states included in calculating the 250,000 threshold.AE