Your Committee on Rules and Legislative Procedures , to which was referred Senate Bill 33 , has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows:
interest in any subsidiary.".
Page 7, line 39, delete "12" and insert " 13".
Page 7, line 41, delete "13" and insert " 14".
Page 8, line 10, delete "14" and insert " 15".
Page 8, between lines 14 and 15, begin a new paragraph and insert:
" Sec. 16. "Financial services businesses" includes investment banking, commercial banking, industrial banking, savings and loan associations, credit unions, trust companies, other lending and loan brokerage services, services related to the extension of credit (including but not limited to real estate and personal property appraisal; arranging equity financing; check-guaranty services; collection agency services; asset management, servicing, and collection activities; real estate settlement services; and lease financing transactions), securities broker-dealer and trading services, private placement services, acting as a futures commission merchant, securities underwriting, transactions in bullion, precious metals, and foreign currency, investment advisory services, financial planning services, third party administration of insurance policy claims and accounts receivable, the advance or loan of funds using accounts receivable as collateral, organization and operation of investment companies and mutual funds, employee benefit planning and consultation services, actuarial services, issuance of money orders, savings bonds, and traveler's checks, and other operations and services either closely related to or a proper incident to the foregoing.".
Page 8, line 15, delete "15" and insert " 17".
Page 8, line 20, delete "16" and insert " 18".
Page 8, between lines 21 and 22, begin a new paragraph and insert:
" Sec. 19. "Material ownership interest" means an ownership interest equal to more than one-half of one percent (0.5%) of the voting securities of the issuer, or a larger percentage as the commissioner may approve.".
Page 8, line 22, delete "17" and insert " 20".
Page 8, line 27, delete "18" and insert " 21".
Page 8, line 27, after "means" insert " :".
Page 8, line 35, delete "19" and insert " 22".
Page 8, line 36, delete "20" and insert " 23".
Page 8, line 37, delete "21" and insert " 24".
Exchange Commission in 17 CFR 240.3b-7.
(b) After the effective date of a reorganization under this article, the compensation of directors or executive officers of a company shall include only those amounts that satisfy any one (1) of the following criteria:
(1) Amounts that are payable with respect to services rendered before the effective date of the plan of reorganization.
(2) Amounts that would be deemed to be reasonable compensation by the Internal Revenue Service and therefore allowed as proper expense deductions for federal income tax purposes.
(3) Amounts that are disclosed to the policyholders in proxy solicitation materials or other written materials approved by the commissioner as part of the notice of the meeting of the members called to approve a plan of reorganization, are approved by the commissioner in principle and concept as part of the approval of the plan of reorganization, and are approved by the commissioner as to specific amount prior to payments after the effective date of the plan of reorganization.
(4) Amounts that the commissioner deems necessary to preserve the safety and soundness of the stock insurance company subsidiary by enabling it to engage and retain capable employees.
(5) Amounts payable solely out of net income of the company after the effective date of the plan of reorganization.
Sec. 13. A company may invest and conduct operations in businesses outside the ordinary course of the insurance business only from funds separately raised and net income earned, after the effective date of a plan of reorganization.".
Page 32, line 33, after "members'" insert " surplus".
Page 36, between lines 33 and 34, begin a new paragraph and insert:
" Sec. 15. An MIHC may reorganize with a foreign mutual insurance holding company, subject to the approval of the commissioner, under IC 27-1-23. If the MIHC is not the surviving entity in any reorganization transaction, then the commissioner must consider the effect of the transaction on the protections afforded policyholders under the members' surplus protection
principle in determining whether the transaction is in the best
interests of the policyholders. If the commissioner waives any or all
of the provisions of the members' surplus protection principle in
approving a transaction, then the commissioner must explain the
basis for waiving the provisions in writing in the order approving
(Reference is to SB 33 as printed November 16, 1999.)
and when so amended that said bill do pass.