Ohio § 3919.13

§ 3919.13.

Any company or association organized under section 3919.01 of the Revised Code for the purpose of transacting the business of life or accident or life and accident

insurance on the assessment plan, may, with the consent in writing of a majority of

its members, and upon the vote of the majority of its directors or trustees therefor,

and with the written approval of the superintendent of insurance, amend its articles

of incorporation and its constitution and bylaws in such a manner as to permit it

to transact the business of life insurance on the legal reserve or level premium plan

as a mutual company without capital stock.  Such company or association, upon procuring from the superintendent a certificate

of authority to transact business on the legal reserve or level premium plan, shall

incur the obligations and enjoy the benefits thereof as provided by the laws of this

state, as though it had thus been originally incorporated, and thereafter it shall

cease to receive members and issue certificates on the assessment plan;  such corporation,

under its articles of incorporation as amended, is a continuation of the original

corporation, and the officers at the time of such amendment shall serve through the

terms for which they have been elected, but their successors shall be elected and

serve for the terms and perform the duties provided for in the constitution and bylaws

of the association after such amendment.  The amendment of the articles of incorporation, as provided in this section, together

with the amendment of the constitution and bylaws of such association, shall not affect

existing suits, rights, or contracts. Any such company or association may amend its articles of incorporation and its constitution

and bylaws, as provided in this section, so as to enable it to transact the business

of legal reserve or level premium life insurance on the mutual plan, without capital

stock, and in such case the sections in Chapters 3907., 3909., 3911., and 3913. of

the Revised Code relating to capital stock or legal reserve companies do not apply

to such company or association, and thereupon such company or association shall deposit

with the superintendent funds to the amount of one hundred thousand dollars held by

it for the protection of its members and policyholders, of the character specified

in sections 3907.14 and 3907.15 of the Revised Code .  Said deposit shall be held by the superintendent in trust for the benefit and security

of all of the members and policyholders of such company or association.  All contracts and certificates issued prior to the amendment of the articles of

incorporation and constitution and bylaws, as provided in this section, shall be valued

as one year term insurance at the ages attained, according to the standard of valuation

specified for life insurance policies by the laws of this state.  At the time of the amendment of its articles of incorporation, such company shall

compute, in a manner satisfactory to the superintendent, the value of each member's

interest in the funds of such company, and shall at the time of such amendment notify

each member of the amount standing to his credit, and shall give to each of its members

the right to exchange his certificate for a policy upon the legal reserve basis.  Within six months after the receipt of said notice, each member shall declare, in

writing, whether he elects to do one of the following: (A) To take a legal reserve policy, which shall not exceed in amount the maximum amount

payable to beneficiary on such member's certificates, unless such limitation is expressly

waived by such company or association, the premiums on which shall be reduced each

year by the annuity purchasable by his credit in the funds of the company or association; (B) To retain his original certificate. If such member elects to retain his original certificate, or if he fails to make an

election within the time specified, the assessments shall be levied and collected

as provided in the constitution and bylaws of such company or association in force

at the time of the amendment of the articles of incorporation.