Section 11109 Of Article 6. Powers Of Commissioner From California Insurance Code >> Division 2. >> Part 2. >> Chapter 10. >> Article 6.
11109
. On such conversion:
(a) Except as provided in (b) hereof all funds, assets and
liabilities of any nature which theretofore were the funds, assets or
liabilities of such society shall become the funds, assets and
liabilities of such mutual life insurance company. In determining
whether such mutual life insurance company meets the minimum capital
and surplus requirements of this code, the commissioner shall
consider such funds to be those of such mutual life insurance
company. Such conversion shall likewise extinguish the assessment
liability, if any, of the members, certificate holders or
beneficiaries of such society.
(b) If by reason of any contract right in any member, certificate
holder or beneficiary which exists on the effective date of this
chapter, the transfer of such funds or assets would violate such
right then the assets or funds as to which such contract right
pertains shall be segregated and held to discharge the liabilities of
such mutual life insurance company to the persons entitled thereto.
In this case such separate funds shall not be considered by the
commissioner in determining if such mutual life insurance company
meets minimum capital and surplus requirements, and the assessment
liability, if any, of such member, certificate holder or beneficiary
is not extinguished.