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This entry was published on 2014-09-22
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SECTION 8007
Approval of plan by superintendent; hearing
Insurance (ISC) CHAPTER 28, ARTICLE 80
§ 8007. Approval of plan by superintendent; hearing. The
superintendent shall order a public hearing on the plan to be held prior
to the plan being submitted to the policyholders for their approval. The
reorganizing insurer shall give written notice of the hearing to
policyholders whose policies or contracts are in force on the adoption
date, sent by mail or electronic transmission to the last known mailing
or electronic addresses of such policyholders as shown on the records of
the reorganizing insurer. Such summary notice shall be subject to the
approval of the superintendent, shall include the date, time and place
of the hearing, and shall include both a website address and a toll-free
telephone number through which members may obtain, if not included in
the summary notice, a full notice of the hearing and either a true and
correct copy of the plan, or a summary thereof approved by the
superintendent, and such other explanatory information as the
superintendent shall approve or require. The reorganizing insurer shall
also post a copy of such notice on its website. Such notice shall be
sent at least thirty days before the date specified for the hearing. The
hearing shall be held at a time and location in this state deemed by the
superintendent to be most convenient to the greatest number of persons
affected by such plan. At such hearing any person may be heard in favor
of, or against, the terms of the plan. The plan of reorganization shall
be made available for public inspection at one office of the department
in each city in this state where the department maintains an office and
at the principal office of the reorganizing insurer. The superintendent
shall approve the plan if the superintendent finds that:

(a) the plan is fair and equitable to policyholders;

(b) the plan does not violate this article; and

(c) after giving effect to the reorganization, the reorganized insurer
will have an amount of capital and surplus the superintendent deems to
be reasonably necessary for its future solvency.