Mutual Property and Casualty Insurance Company Having Only Mutual Policyholders Conversion Regulations

The Mutual Property and Casualty Insurance Company Having Only Mutual Policyholders Conversion Regulations, which were made under the Insurance Companies Act, regulate the process by which a mutual property and casualty insurance company is converted into a company with common shares. The regulations are intended to ensure that the conversion process is carried out in an orderly and transparent manner.

To initiate the conversion process, the directors of a mutual property and casualty insurance company must pass a resolution recommending conversion. The converting company then develops a conversion proposal that includes detailed information about the proposed conversion, such as the value of the company, the eligibility date, and the benefits to be provided to eligible policyholders.

The converting company must obtain the Superintendent's authorization to send the notice referred to in paragraph 237(1.2)(a) of the Act. The notice must include a description of the steps taken in the conversion process, the conversion proposal, and other relevant information.

Eligible policyholders are entitled to receive a notice of the special meeting, which includes information about the proposed conversion, the benefits to be provided, and their right to vote on the conversion proposal. The eligible policyholders must approve the conversion proposal within three months after its approval by the directors.

After the conversion is approved, the directors of the converting company must make an application under section 8 of the Act.