Amendment to Insurance Act Re: Corporate Existence of Domestic Life Insurance Corporation

June 22, 1957

REPUBLIC ACT NO. 1932

AN ACT TO FURTHER AMEND SECTION ONE HUNDRED AND NINETY-SIX OF THE INSURANCE LAW, ACT NUMBERED TWO THOUSAND FOUR HUNDRED AND TWENTY-SEVEN, AS AMENDED

SECTION 1. Section one hundred and ninety-six of Act Numbered Two thousand four hundred and twenty-seven, as amended, otherwise known as the Insurance Law, is hereby further amended so as to read as follows: casia

"Sec. 196. Any provision of law to the contrary notwithstanding, every domestic life insurance corporation, formed for a limited period under the provisions of its articles of incorporation, may extend its corporate existence for a period not exceeding fifty years in any one instance by amendment to its articles of incorporation on or before the expiration of the term so fixed in said articles: Provided, however, That such an amendment shall require the affirmative vote of stockholders holding at least two-thirds of the subscribed capital stock at a stockholders' meeting called for the purpose. Any stockholder who did not vote for such an amendment may, within forty days after the date the amendment was authorized, object thereto in writing and demand payment for his shares. If, after such a demand by stockholder, the insurance corporation and the stockholders cannot agree upon the value of his share or shares, such value shall be ascertained by three disinterested persons, one of whom shall be named by the stockholders, another by the corporation, and the third by the two thus chosen. The finding of the appraisers shall be final, and if their award is not paid by the corporation within thirty days after it is made, it may be recovered in addition to damages and attorney's fees in an action by the stockholder against the corporation. Upon payment by the corporation to the stockholder of the agreed or awarded price of his share or shares, the stockholders shall forthwith transfer and assign the share or shares held by him as directed by the corporation. cd

"The Securities and Exchange Commission shall be entitled to collect and receive for the filing of the amended articles of incorporation hereinabove referred to the same fees that it may be entitled to collect and receive for the filing of articles of incorporations as now provided by law. No domestic insurance corporation shall adopt the name of any existing company transacting a similar business or any name so similar as to be calculated to mislead the public."

SECTION 2. This Act shall take effect upon its approval.

Approved: June 22, 1957

Published in the Official Gazette, Vol. 53, No. 20, p. 6941 on October 31, 1957