Conn. Gen. Stat. § 38a-156

Current with legislation from the 2024 Regular and Special Sessions.

Section 38a-156 - Definitions

As used in this section and sections 38a-156a to 38a-156m, inclusive:

(1) "Adoption date" means the date a mutual insurer's board of directors adopts a plan of reorganization;

(2) "Commissioner" means the Insurance Commissioner;

(3) "Converted company" means the domestic stock corporation into which a mutual holding company has been converted in accordance with the provisions of section 38a-156j;

(4) "Converting company" means a mutual holding company that is converting into a domestic stock corporation in accordance with the provisions of section 38a-156j;

(5) "Effective date" means the date upon which the reorganization of the mutual insurer is effective, as provided in subsection (g) of section 38a-156a;

(6) "Equity rights" means the rights conferred to members, by law or by a mutual holding company's articles of incorporation, in the equity of such company, including the right to participate in any distribution of such company's equity or assets. "Equity rights" do not include any rights expressly conferred solely by the terms of a policy except for the right to vote;

(7) "Institution" means a corporation, stock corporation, limited liability company, association, business trust, partnership or any similar entity;

(8) "Intermediate stock holding company" means an institution (A) of which at least fifty-one per cent of its voting stock is owned from the effective date, directly or through another intermediate stock holding company, by a mutual holding company, and (B) that owns from the effective date, directly or indirectly, at least fifty-one per cent of the voting stock of at least one reorganized insurer. For purposes of calculating the percentage of voting stock, any issued and outstanding securities of the reorganized insurer or any intermediate stock holding company that are convertible into voting stock are considered voting stock;

(9) "Member" means, (A) with respect to a reorganizing insurer, a policyholder of such insurer, and (B) with respect to a mutual holding company, a person entitled to vote, by law or by the mutual holding company's charter or bylaws, at such company's meetings;

(10) "Membership interests" means the rights other than equity rights conferred to members, by law or by a mutual holding company's charter or bylaws. "Membership interests" do not include any rights expressly conferred solely by the terms of a policy;

(11) "Mutual holding company" means a corporation organized in accordance with sections 38a-156a and 38a-156b, (A) that, from the effective date, owns, directly or through one or more intermediate stock holding companies, at least fifty-one per cent of the voting stock of one or more reorganized insurers, (B) that is not authorized to issue voting stock, and (C) whose articles of incorporation contain the provisions set forth in subsection (c) of section 38a-156b. For purposes of calculating the percentage of voting stock, any issued and outstanding securities of the reorganized insurer or any intermediate stock holding company that are convertible into voting stock are considered voting stock;

(12) "Mutual insurer" has the same meaning as provided in section 38a-1;

(13) "Officer" means an individual elected to such position by the board of directors of the mutual holding company, intermediate stock holding company or reorganized insurer, as applicable;

(14) "Outside director" means a director of the mutual holding company, intermediate stock holding company or reorganized insurer, who is not an officer or employee of such company or insurer;

(15) "Person" means an individual, a public or private corporation, a stock corporation, a limited liability company, an association, a business trust, a partnership, a board of directors, an estate, a trustee, a fiduciary, or any similar entity, or the state or any political subdivision of the state;

(16) "Plan of conversion" means a plan adopted by a mutual holding company in accordance with section 38a-156j;

(17) "Plan of reorganization" means a plan adopted by a mutual insurer in accordance with section 38a-156a;

(18) "Policy" means an individual or group insurance policy, an individual or group annuity contract or a fidelity or surety bond, issued by a mutual insurer. "Policy" does not include a reinsurance contract;

(19) "Reorganized insurer" means the domestic stock insurer into which a mutual insurer has been reorganized in accordance with the provisions of section 38a-156a;

(20) "Reorganizing insurer" means a domestic mutual insurer that is reorganizing under a plan of reorganization in accordance with the provisions of section 38a-156a;

(21) "Stock purchase right" means a nontransferable right, granted to each policyholder of the reorganized insurer that has been a policyholder of the reorganizing insurer for at least one year prior to the effective date, to acquire stock in the reorganized insurer or in any intermediate stock holding company affiliated with such insurer if such insurer or company conducts an initial public offering of voting stock;

(22) "Voting stock" means securities of any class or any ownership interest having voting power for the election of directors, trustees or management of a person. "Voting stock" does not include securities having voting power only because of the occurrence of a contingency.

Conn. Gen. Stat. § 38a-156

( P.A. 14-123, S. 1.)

Added by P.A. 14-0123, S. 1 of the Connecticut Acts of the 2014 Regular Session, eff. 6/6/2014.