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stock insurer upon initial authorization to transact like | | kinds of insurance, together with expendable surplus funds in | | an amount not less than 1/2 of such required capital stock; | | and |
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| | | D.__The superintendent finds that the insurer's management | | has not, through reduction in volume of new business written | | or cancellation or any other means, sought to reduce, limit | | or affect the number or identity of the reorganizing | | insurer's members to be entitled to participate in the plan | | or to secure for the individuals comprising management any | | unfair advantage through the plan. |
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| | | 5.__Compensation.__A director, officer, agent or employee of | | the reorganizing insurer or any other person may not receive any | | fee, commission or other valuable consideration whatsoever, other | | than that person's usual regular salary and compensation, for in | | any manner aiding, promoting or assisting in the reorganization | | except as set forth in the plan approved by the superintendent.__ | | This provision does not prohibit the payment of reasonable fees | | and compensation to attorneys, accountants or actuaries for | | services performed in the independent practice of their | | professions, even though they also may be directors of the | | insurer. |
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| | | 6.__Effective date of plan.__The plan__becomes effective, | | after approval by the superintendent and by the policyholders, | | upon the filing with the superintendent and the Secretary of | | State of amended and restated articles of incorporation of the | | reorganized insurer pursuant to section 3310 and articles of | | incorporation of the mutual holding company and any related stock | | holding company. |
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| | | 7.__Consequence of effective plan.__The following are the | | consequences of a plan that becomes effective pursuant to | | subsection 6. |
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| | | A.__The reorganizing insurer immediately becomes a domestic | | stock insurer. |
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| | | B.__The members of the reorganizing insurer on the effective | | date immediately become members of the mutual holding | | company with membership interests in that holding company.__ | | All membership interests in the reorganizing insurer are | | extinguished. |
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| | | C.__A person becoming a policyholder of the reorganized | | insurer after the effective date of the plan__becomes a | | member of the mutual holding company immediately upon | | issuance of the policy or contract. |
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