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Texas Insurance Code - INS § 885.063. Merger or Transfer of Membership or Funds

Current as of January 01, 2024 | Updated by FindLaw Staff

(a) A domestic fraternal benefit society may not merge with or accept a transfer of the membership or funds of another fraternal benefit society unless:

(1) the merger or transfer is evidenced by a written contract that fully sets out the terms of the merger or transfer; and

(2) the societies file with the department:

(A) a copy of the contract;

(B) a sworn statement of the financial condition of each society by its president and secretary or corresponding officers; and

(C) a certificate of those officers, verified under oath, that the merger or transfer has been approved by a vote of two-thirds of the members of the supreme governing body of each society.

(b) On submission, the commissioner shall examine the contract, financial statements, and certificates. The commissioner shall approve the merger or transfer and issue a certificate to that effect if the commissioner determines that:

(1) the contract conforms with this section and Section 885.052(d);

(2) the financial statements are correct;

(3) the merger or transfer is just and equitable to the members of each society; and

(4) the new or surviving society complies with each requirement of a fraternal benefit society under this chapter.

(c) A contract of merger or transfer takes effect on issuance of a certificate under Subsection (b).

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Cite this article: FindLaw.com - Texas Insurance Code - INS § 885.063. Merger or Transfer of Membership or Funds - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-885-063/

Read this complete Texas Insurance Code - INS § 885.063. Merger or Transfer of Membership or Funds on Westlaw

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