Delaware Code § 18-4970

(a) It is determined and declared as a matter of legislative finding that policyholders of a mutual insurer have contractual rights to
insurance coverage and certain membership rights consisting principally of the right to elect directors of a mutual insurer, the right to vote
on certain fundamental transactions undertaken by a mutual insurer, and the right to share in surplus in the event of a solvent liquidation
of a mutual insurer. It is determined and declared that the membership rights of policyholders in a domestic mutual company existing as
of October 17, 2010, who vote to make such mutual company subject to this chapter, or policyholders of a foreign mutual insurer who
vote to redomesticate to Delaware pursuant to § 4974 of this title, are not equivalent to an ownership interest in such mutual insurer and
that, in connection with the mutual to stock conversion of a mutual insurer, the grant to policyholders of a first priority right to purchase
stock in the converting company or a holding company for such converting company is adequate compensation for the relinquishment of
the membership rights of a policyholder. The General Assembly determines that it is desirable to provide for the conversion of a mutual
insurer from the mutual form to the stock form in a manner similar to the manner in which mutual savings institutions convert from
mutual to stock form under federal law and regulation.
(b) It is further determined and declared that the purpose and policy of this chapter shall be:
(1) To provide for the mutual to stock conversion of a mutual insurer in a manner consistent with the manner in which a mutual
savings institution converts from mutual to stock form under federal law and regulation; and
(2) To facilitate the recapitalization of the insurance industry nationally by establishing a proven method of capital formation for
insurers that elect to domicile in Delaware.

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