40-4011. Actions challenging validity of conversion; security required.
40-4011
40-4011. Actions challenging validity of conversion; security required.No action challenging the validity of a conversion, or any aspectof such conversion under this act, may be commenced more than 30 days afterthe final act of conversion.
In any action challenging the plan of conversion or charging that thedirectorsof the converting insurer, the convertedinsurer, the mutual holding company or the stock holding company, asapplicable or any other person or personshaveacted improperly in connection with any aspect of the conversion, the insureror converted insurer in whose right such action is brought or the defendantor defendants shall be entitled at any stage of the proceedingsbefore finaljudgment to require the plaintiff or plaintiffs to give security for thereasonable expenses including attorney fees, which may be incurred by theconverting insurer, converted insurer or any other parties defendant inconnectionwith such action. Thereafter, the amount of such security, from time totime, may be increased or decreased in the discretion of the court havingjurisdiction of such action upon a showing that the security provided hasor may become inadequate or excessive.
History: L. 1985, ch. 154, § 11;L. 1997, ch. 107, § 13; July 1.