PURPOSE: This rule describes the effect of the conversion on the members of the mutual holding company, on their membership interests, and on the converted holding company.

Upon the effective date, all membership interests shall be extinguished and members eligible to receive consideration under the plan of conversion shall be entitled to receive such consideration pursuant to the terms of the plan. The converted holding company shall be a continuation of the mutual holding company, and the conversion of the mutual holding company in no way shall annul, modify, or change any of the mutual holding company’s existing suits, rights, contracts, or liabilities, except as provided in the plan. After conversion, the converted holding company shall exercise all the rights and powers and perform all the duties conferred or imposed by law upon stock corporations and shall retain all rights and contracts existing prior to conversion, subject to the effectiveness of the plan. Upon the conversion of a mutual holding company under this Chapter 20 CSR 16, sections 376.1300 to 376.1322, RSMo, no longer apply to the mutual holding company, the converted holding company, any intermediate stock holding company, or the reorganized insurer.

AUTHORITY: section 374.045, RSMo Supp. 1998.* Original rule filed March 1, 1999, effective Aug. 30, 1999.

*Original authority 374.045, RSMo 1967, amended 1993, 1995.