Act 781 relaxes the requirements for a mutual stock insurer wishing or planning to convert to a domestic stock insurer. The Act decreases the percentage of approval required from policyholders for successful conversion. Further, the Act mandates giving policyholders a choice between participating in a conversion or receiving 100% of their equity in cash. Also, the Act allows a converted insurer's corporate existence to continue running without refiling a corporate charter. Act 977 authorizes domestic stock insurers to issue preferred stock.
Jonathan M. Adelman,
INSURANCE Domestic Stock and Mutual Insurers: Provide for the Conversion of a Mutual Insurer to a Stock Insurer; Authorize Domestic Stock Insurers to Issue Preferred Stock,
Ga. St. U. L. Rev.
Available at: https://readingroom.law.gsu.edu/gsulr/vol11/iss1/28