(a) Control of stock company.--A reciprocal insurer may not convert under this chapter if, as a direct result of the conversion, a person or the person's affiliates acquire control of the stock company, unless that person and the person's affiliates comply with the provisions of section 1402 of the act of May 17, 1921 (P.L.682, No.284), known as The Insurance Company Law of 1921. For purposes of this subsection, the term "control" shall have the meaning provided in section 1401 of The Insurance Company Law of 1921.
(b) Stock insurance company rules.--Except as otherwise specified in this chapter, a stock company resulting from the conversion of a reciprocal insurer under this chapter shall have and may exercise the rights and privileges and shall be subject to the requirements and regulations imposed upon stock insurance companies formed under this act and other laws of this Commonwealth relating to the regulation and supervision of insurance companies, but it may not exercise rights or privileges that other stock insurance companies may not exercise.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 35 - Medical Professional Liability Reciprocal Exchange-to-Stock Conversion
Section 3502 - Adoption of plan of conversion
Section 3503 - Contents of plan of conversion
Section 3504 - Optional provisions of plan of conversion
Section 3505 - Alternative plan of conversion
Section 3506 - Effective date of plan
Section 3508 - Corporate existence
Section 3509 - Conflict of interest
Section 3510 - Failure to give notice
Section 3511 - Limitation on actions
Section 3512 - Reciprocal insurer insolvent or in hazardous financial condition
Section 3513 - Rules and regulations
Section 3514 - Laws applicable to stock company
Section 3515 - Licensing of stock company and commencement of business as an insurance company