Section 13.25 - Conversion or Change of Name From a Burial Association to a Local Mutual Aid Association(a) The name of a new association must be submitted and reserved before making any definite arrangements for conversion. To convert a burial association or change the name of a burial association or local mutual aid association, the constitution and bylaws and articles of association must be amended in accordance with the Insurance Code, Article 14.05, which reads substantially as follows: "Bylaws of any association may be amended by a majority of the members of the association present when ratified by the board of directors, but only at meetings called for that purpose, or at regular meetings. Amendments to the bylaws shall not be effective until approved by the commissioner of insurance. Notices of all meetings, whether regular or special, at which amendments to bylaws will be considered, must be mailed to all members. Such notices must contain full copies of the proposed changes in the bylaws and fair explanation of the intent and effect thereof."(b) To avoid the necessity of declining to approve the purported amendments because of deficiency in the notice, it is suggested that such notices be submitted to the commissioner of insurance before they are mailed to the members.(c) After the meetings, the following must be submitted to the commissioner of insurance: (1) two copies of the printed notice to members accompanied by an affidavit of the secretary that the notice was mailed by first class mail to every member;(2) two duly signed copies of the minutes of the membership meeting reciting the action taken;(3) two duly signed copies of the minutes of the meeting of the board of directors ratifying the action taken by the membership;(4) two copies of the amendment to the constitution and bylaws duly certified by the president and secretary;(5) two copies of the amendment to the articles of association duly certified by the president and secretary:(A) if the change is a change of name only, two copies of the endorsements or certificates of name change which are to be sent to each member stating the change in the name;(B) if the change is a conversion from a burial association to a local mutual aid association, two copies of the assumption certificate which is to be issued by the converted company, and the assumption certificate should provide, in the event the burial policy does not have a designated beneficiary, an automatic beneficiary, and further grant to the policyholder the right to thereafter change the automatically designated beneficiary;(6) $1.00 for the amended certificate of authority in the new name of the association;(7) an application for amended certificate of authority;(8) current certificate of authority must be surrendered for cancellation;(9) two copies each of tentative drafts of policy form, application form, reinstatement application form, and rate schedule;(d) A hearing is required, and 10 days' notice of hearing will be given.(1) All documents submitted shall be verified as required by law.(2) Approval shall not be given to the amendments and the amended certificate of authority shall not be issued until the final printed copies of the policy, application, application for reinstatement, and rate schedule are in acceptable form.(3) One copy of each document will be returned to the association for its permanent files.28 Tex. Admin. Code § 13.25
The provisions of this §13.25 adopted to be effective January 1, 1976; amended to be effective April 11, 1983, 8 TexReg 1025.