Bill > S05305

This bill provides a comprehensive framework for domestic mutual property/casualty insurers to reorganize into a structure with a mutual holding company. The bill allows a mutual insurance company to transform into a stock insurance company while maintaining a mutual holding company that retains membership interests of the original policyholders. Key provisions include establishing detailed definitions, outlining a multi-step reorganization process, and creating specific governance requirements for the new corporate structure. The reorganization process requires approval from the insurance superintendent and a vote by eligible members, and mandates that the mutual holding company must maintain at least 51% voting stock ownership of the reorganized insurance company. The bill includes protections for policyholders, such as ensuring that the reorganization will not change existing policy benefits, and establishes strict governance rules, including requirements for outside directors and limitations on stock ownership. The reorganization allows for potential future public offerings or private equity placements, with superintendent oversight, and provides a mechanism for the mutual holding company to potentially convert to a full stock corporation in the future. Importantly, the bill aims to provide flexibility for mutual insurers while maintaining regulatory safeguards to protect policyholder interests.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5305