28 Tex. Admin. Code § 13.25 - Conversion or Change of Name From a Burial Association to a Local Mutual Aid Association
(a) The name of a
new association must be submitted and reserved before making any definite
arrangements for conversion. To convert a burial association or change the name
of a burial association or local mutual aid association, the constitution and
bylaws and articles of association must be amended in accordance with the
Insurance Code, Article 14.05, which reads substantially as follows: "Bylaws of
any association may be amended by a majority of the members of the association
present when ratified by the board of directors, but only at meetings called
for that purpose, or at regular meetings. Amendments to the bylaws shall not be
effective until approved by the commissioner of insurance. Notices of all
meetings, whether regular or special, at which amendments to bylaws will be
considered, must be mailed to all members. Such notices must contain full
copies of the proposed changes in the bylaws and fair explanation of the intent
and effect thereof."
(b) To avoid
the necessity of declining to approve the purported amendments because of
deficiency in the notice, it is suggested that such notices be submitted to the
commissioner of insurance before they are mailed to the members.
(c) After the meetings, the following must be
submitted to the commissioner of insurance:
(1) two copies of the printed notice to
members accompanied by an affidavit of the secretary that the notice was mailed
by first class mail to every member;
(2) two duly signed copies of the minutes of
the membership meeting reciting the action taken;
(3) two duly signed copies of the minutes of
the meeting of the board of directors ratifying the action taken by the
membership;
(4) two copies of the
amendment to the constitution and bylaws duly certified by the president and
secretary;
(5) two copies of the
amendment to the articles of association duly certified by the president and
secretary:
(A) if the change is a change of
name only, two copies of the endorsements or certificates of name change which
are to be sent to each member stating the change in the name;
(B) if the change is a conversion from a
burial association to a local mutual aid association, two copies of the
assumption certificate which is to be issued by the converted company, and the
assumption certificate should provide, in the event the burial policy does not
have a designated beneficiary, an automatic beneficiary, and further grant to
the policyholder the right to thereafter change the automatically designated
beneficiary;
(6) $1.00
for the amended certificate of authority in the new name of the
association;
(7) an application for
amended certificate of authority;
(8) current certificate of authority must be
surrendered for cancellation;
(9)
two copies each of tentative drafts of policy form, application form,
reinstatement application form, and rate schedule;
(10) bond; and
(11) statutory deposit.
(d) A hearing is required, and 10 days'
notice of hearing will be given.
(1) All
documents submitted shall be verified as required by law.
(2) Approval shall not be given to the
amendments and the amended certificate of authority shall not be issued until
the final printed copies of the policy, application, application for
reinstatement, and rate schedule are in acceptable form.
(3) One copy of each document will be
returned to the association for its permanent files.
Notes
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