Hearing

The commissioner shall conduct a public hearing regarding a proposed demutualization within ninety days after submission of a complete petition to the commissioner. Notice of the hearing must be published in five newspapers, one of which must be a daily newspaper published at Bismarck, at least two weeks before the hearing on the petition. Notice shall be mailed by the converting insurer to each member and eligible member, accompanied by a copy of the plan of conversion, at least forty-five days prior to the hearing. At the hearing, the converting insurer, its members, eligible members, and any other person whose interests may be affected by the proposed conversion may present evidence, examine or cross-examine witnesses, and offer oral and written arguments and comments to the extent permitted by, and according to the procedure for adjudicative proceedings under, North Dakota Century Code chapter 28-32. The commissioner may approve the conversion of the plan if the commissioner finds the following: 1. The conversion plan is fair and equitable to the converting insurer, its members, and its eligible members; 2. The conversion plan does not violate the law; 3. The converted insurer, after the demutualization, will be able to satisfy the requirements for the issuance of a certificate of authority to write the line or lines of insurance for which it was licensed before the demutualization; 4. Upon demutualization, the paid-in capital and surplus of the converted insurer must be in an amount not less than the minimum paid-in capital and surplus required to organize a domestic stock insurance company; 5. The rights of every member in any policy of insurance of the converting insurer, excluding voting and dividend rights, if any, may not be adversely affected by the demutualization and must continue in full force in accordance with the terms of the policy of each such member; 6. The financial condition of the converted insurer would not be such as might jeopardize its financial stability or prejudice the interest of its policyholders and members; 7. The demutualization will not affect adversely access to health care by persons covered by any health insurance policies or contracts issued by the converting insurer; 8. The demutualization is not likely to be hazardous or prejudicial to the interests of the members, the insureds, or the public; and 9. A conversion plan affecting a nonprofit insurer or holding company makes adequate provision for the interest of the public in such insurer or holding company.