Mutual Insurance Holding Companies - Conversion to Mutual Insurers

HB 1616 allows mutual insurance holding companies in Maryland to convert their entire system into a mutual insurer (owned by policyholders rather than shareholders). It directly affects existing mutual insurance holding companies that own a reorganized stock insurer. The bill requires a detailed conversion plan approved by 75% of company members and the Maryland Insurance Commissioner, including provisions for membership interests becoming nontransferable, policy continuity, asset transfers, and dissolution of holding companies. The plan must include a 5-year operational strategy and documentation for commissioner review at least 60 days before conversion.