[§432C-2]  Application for conversion.  (a)  A nonprofit entity shall file an application with the commissioner at least six months prior to a proposed conversion.  The application shall include a report of the activities of the nonprofit entity and a plan for the conversion including the following:

     (1)  A board resolution indicating that a majority of the board of directors has approved the plan for conversion;

     (2)  Copies of the original and amended articles of incorporation, if any;

     (3)  The nature of the public benefit or charitable activities undertaken by the nonprofit entity;

     (4)  Expenditures incurred by the nonprofit entity on the public benefit or charitable activities;

     (5)  A means that establishes that the conversion shall not be prejudicial to the subscribers, contract holders, or residents of this State;

     (6)  A comparative premium rate analysis of the nonprofit entity's major plans and products, with the analysis comparing actual premium rates for the past three years prior to the proposed conversion and projected premium rates for three years following the proposed conversion.  The analysis shall address the projected impact, if any, of the proposed conversion upon the nonprofit entity's future underwriting profit, investment income, and loss and claim reserves, including the effect, if any, of adverse market or risk selection upon the reserves; and

     (7)  A valuation of all assets held by the nonprofit entity.

     (b)  The commissioner may request any additional information that the commissioner deems necessary to carry out this chapter. [L 1998, c 260, pt of §2]