40-4007. Prohibition on certain persons benefiting from assistance in conversion.
40-4007
40-4007. Prohibition on certain persons benefiting from assistance inconversion.(a) No director, officer, agent or employee of the insurershall secure any unfair advantage through a plan ofconversion by reducing the volume of new business written,by cancellation or by reducing or by any other means seekingto reduce, limit or alter the number or identity of theinsurer's policyholders entitled to participate in suchplan.
(b) No director, officer, agent or employee of the insurer shallreceive any fee, commission or other valuable consideration whatsoever,other than regular salary and compensation, for in any manner aiding, promotingor assisting in the conversion except as set forth in the plan approvedby the commissioner of insurance. This provision shall not be deemed toprohibit the payment of reasonable fees and compensation to attorneys atlaw, accountants, appraisers, actuaries, financial advisers or other similarprofessionals for services performed in the independent practice of theirprofessions, even though such person may also be directors of theinsurer.
History: L. 1985, ch. 154, § 7;L. 1997, ch. 107, § 9; July 1.