H.
B.
4470
(By Delegate S. Williams)
[Introduced February 14, 1994; referred to the
Committee on Banking and Insurance.]
A BILL to amend and reenact section eighteen, article twenty-two, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to mergers and consolidations between farmers' mutual fire insurance companies and stock insurers; and removing the statutory designation of the merger's surviving entity.
Be it enacted by the Legislature of West Virginia:
That section eighteen, article twenty-two, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 22. FARMERS' MUTUAL FIRE INSURANCE COMPANIES.
§
33-22-18. Mergers and consolidations.
(a) A farmers' mutual fire insurance company shall not merge or consolidate with any stock insurer.
(b) A farmers' mutual fire insurance company may merge or consolidate with another farmers' mutual fire insurance company or merge into a domestic mutual insurer in the manner provided in section twenty-eight, article five of this chapter for the merger or consolidation of other types of domestic mutual insurers. In the event of a merger between a farmers' mutual fire insurance company and a domestic mutual insurer, the domestic mutual insurer shall be the surviving entity.
NOTE: The purpose of this bill is to remove the statutory requirement that the domestic mutual insurer be the surviving entity in the event of a merger between a farmers' mutual fire insurance company and a domestic mutual insurer.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.