Mutual Property and Casualty Insurance Company with Non-mutual Policyholders Conversion Regulations

The Mutual Property and Casualty Insurance Company with Non-mutual Policyholders Conversion Regulations, made under the Insurance Companies Act, regulate the process for mutual property and casualty insurance companies to convert into a company with common shares. The regulations apply to companies that have non-mutual policyholders.

To initiate the conversion process, the directors of the company must pass a resolution recommending conversion and setting out specific criteria, including the date by which eligible mutual policyholders must have applied for their policies and the group of policyholders who hold non-mutual policies. The company must then develop a conversion proposal in accordance with sections 5 to 13.

The regulations also outline the process for negotiating with eligible non-mutual policyholders, including a vote on whether to negotiate, authorization from the Superintendent to send a notice of intent to negotiate, and the submission of an application for an initial court order. The court must then make an initial order setting out specific procedures, including the publication of information, the manner of effecting service, and the date, time, and location of hearings.

The regulations also provide for the appointment of counsel for each class of policyholders, the provision of information to counsel, and the determination of costs payable by the company. The policyholder committees must enter into negotiations with eligible non-mutual policyholders to establish a method for allocating the value of the converting company and determine whether any benefits will be provided to persons or classes of persons other than eligible policyholders.

The regulations aim to ensure that the conversion process is fair, transparent, and efficient, and that all stakeholders are given adequate notice and opportunity to participate in the negotiations.