HB 212 -- INSURANCE

SPONSOR:  Ward

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Insurance by a vote of 14 to 0.

This bill allows mutual insurance companies to notify policy
holders via newspaper publication when they acquire a
controlling interest in another mutual insurance company when
the value of the acquiring company is at least 10 times the
value of the company being acquired.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that existing law governing mergers
of mutual companies requires the acquiring company to send a
notice via first class mail to every policyholder, which could
be a large number of people, at significant expense.  But these
are merely policyholders in a mutual company, not stockholders.
Most of these policyholders have no interest in the
transaction.  The bill allows notice by publication only when
the acquired company is very small, compared to the acquiring
company.

Testifying for the bill were Representative Ward; and Missouri
Insurance Coalition.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:42 am