Sec. 826.204. MEMBERSHIP INTERESTS. (a) The membership interests of the policyholders of the resulting company become membership interests in the mutual holding company. Eligible members of the converting company become members of the mutual holding company in accordance with the articles of incorporation and bylaws of the mutual holding company.
(b) A membership interest in a mutual holding company does not constitute a security as defined by Section 4001.068, Government Code.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.30, eff. January 1, 2022.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle B - Organization of Regulated Entities
Chapter 826 - Conversion of Mutual Insurance Company to Stock Insurance Company
Subchapter E. Conversion Through Mutual Holding Company
Section 826.201. Conversion Through Creation of Holding Company
Section 826.202. Commissioner Powers and Duties; Approval
Section 826.203. Applicability of Certain Laws; Incorporation
Section 826.204. Membership Interests
Section 826.205. Capital Stock Held by Mutual Holding Company
Section 826.206. Conversion of Foreign Mutual Insurance Company