Mutual Insurance Holding Companies - Conversion to Mutual Insurers

SB 982 allows mutual insurance holding companies in Maryland to convert their structure to become mutual insurers (companies owned by policyholders rather than shareholders). To do this, companies must create a detailed plan of conversion approved by their board, 75% of voting members, and the Maryland Insurance Commissioner. The plan requires existing policies to remain in effect, membership interests to transfer to the new mutual insurer, and the converted company to maintain sufficient funds for policyholder protection. This bill amends Maryland’s insurance laws to establish these requirements and streamline the conversion process.