Bill > H0509

This bill expands the definition of "financial guaranty insurance corporation" to include both stock and mutual insurers, and clarifies that mutual insurance holding companies, which are entities without permanent capital stock that own insurance companies, can acquire interests in not-for-profit entities, including not-for-profit health care plans. It also allows the articles of incorporation and bylaws of these holding companies to restrict the rights of policyholders who are members of a not-for-profit health care plan, particularly concerning distributions of assets. The bill further establishes requirements for dividends or distributions from a not-for-profit insurance company subsidiary to its parent mutual insurance holding company, and revises the definition of "distribution" to exclude such transactions, meaning they will not be treated as a distribution to members under general not-for-profit corporation law.