Section 11110 Of Article 6. Powers Of Commissioner From California Insurance Code >> Division 2. >> Part 2. >> Chapter 10. >> Article 6.
11110
. In addition to any other ground for disapproving such
conversion, the commissioner may refuse to give such approval unless
evidence satisfactory to him is submitted that:
(a) The reserves on all certificates theretofore issued are
sufficient to carry them to maturity either by reason of the amount
thereof or by reason of action by such society pursuant to either
subsection (c) hereof or Section 11111;
(b) The plan of conversion will result in the availability of all
funds and assets of the mutual life insurance company to the carrying
out of the contracts of insurance whether transacted before or after
conversion; and
(c) The society has lawfully amended all outstanding certificates
on which the member's contribution was inadequate to carry such
certificate to maturity without assessment. Such amendment shall
accomplish that purpose by either increasing the amount of
contribution or premium, by whatever name known, sufficiently or, at
the option of the certificate holder, reducing the amount of his
benefits sufficiently.