Relating to: conversion of cooperative associations organized to establish and operate nonprofit plans or programs for health care into service insurance corporations.

AB 107 establishes a legal process for nonprofit cooperative health care associations (organized under §185.981) to convert into service insurance corporations. It requires the cooperative’s board to create a detailed conversion plan (including reasons, terms, and new name), which must be approved by the state insurance commissioner before member voting. If approved by both the commissioner and members, the cooperative files articles of conversion with the Department of Financial Institutions, becoming a new service insurance corporation that inherits all assets and obligations. This bill directly affects health care co-ops seeking to operate under a different corporate structure, with no financial compensation allowed for conversion-related work beyond regular salaries.