Bill > A03710

This bill provides a comprehensive framework for mutual property/casualty insurers in New York to reorganize into a mutual holding company structure. The bill allows a domestic mutual property/casualty insurer to transform into a stock insurer while creating a mutual holding company that maintains ownership of the majority of the reorganized insurer's voting stock. Key provisions include establishing a detailed process for reorganization that requires approval from the superintendent of insurance and the insurer's eligible members, with strict requirements for transparency, member protections, and corporate governance. The reorganization process includes specific provisions about member rights, voting procedures, notice requirements, and limitations on transactions. The bill defines multiple terms related to the reorganization, such as "eligible member" and "mutual holding company," and sets out comprehensive rules for how the new corporate structure will function, including restrictions on directors, limitations on stock issuance, and protections for policyholders. Importantly, the bill stipulates that the reorganization cannot change existing policy terms or reduce policy benefits, and requires that the reorganized insurer maintain at least 51% of its voting stock under the control of the mutual holding company. The legislation provides a structured pathway for insurers to modify their corporate structure while maintaining member protections and regulatory oversight.

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https://www.nysenate.gov/legislation/bills/2025/A3710