Search OpenLegislation Statutes

This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
Insurance (ISC) CHAPTER 28, ARTICLE 61
§ 6115. Merger. (a) (1) Two or more reciprocal insurers may, by a
two-thirds affirmative vote of the subscribers of each insurer, merge in
accordance with the provisions of article seventy-one of this chapter.

(2) The powers of such new reciprocal insurer under this article shall
not be greater than those possessed hereunder by the merging insurers.

(3) The operating reserve accumulations of the respective subscribers
shall be transferred and credited to such subscribers as members of the
new reciprocal insurer and all other reserves, guaranty funds and other
undistributed funds shall be transferred to the corresponding reserve or
guaranty fund accounts of the new insurer.

(b) (1) If after examination, the superintendent finds that the merger
of any such insurers is in conformity with law, and that the new
reciprocal insurer meets with the requirements of this chapter, he may
issue a license to such insurer to do business under the provisions of
this chapter. Thereupon, the remaining assets shall be forthwith
transferred to it, and the predecessor reciprocal insurers shall cease
to have authority to do business as such and shall be deemed

(2) Every such new reciprocal insurer formed by merger shall assume
and succeed to all of the obligations and liabilities of the respective
merging reciprocal insurers and shall be held liable to pay and
discharge all such debts and liabilities in the same manner as if they
had been incurred or contracted by it, but the subscribers of such
predecessor reciprocal insurers shall continue subject to all the
liabilities, claims and demands which shall then exist, or which may
thereafter accrue against them, or any of them, by reason of any
obligations incurred by them or on their behalf as such subscribers
before the date of merger.

(3) Upon the merger of any reciprocal insurer, dissenting subscribers
shall be entitled to the conditional withdrawal of their accumulated
operating reserves on deposit with the predecessor insurer as of the
date of merger but a sufficient amount thereof shall be retained by the
new reciprocal insurer as a deposit until all of the obligations
incurred on their behalf have been extinguished.

(4) When all of such obligations have been paid, discharged or
terminated, and the superintendent after an examination shall have so
certified, the said subscribers' deposits or the balances thereof
remaining to their credit shall be returned and released, whereupon the
powers of the attorney-in-fact relating thereto shall cease and