Relating to: conversion of cooperative associations organized to establish and operate nonprofit plans or programs for health care into service insurance corporations.

SB 98 creates a legal process for nonprofit healthcare cooperatives to convert into service insurance corporations. The bill requires cooperatives to submit a detailed conversion plan - including reasons, terms, new name, and governance - to the insurance commissioner for approval, which can be denied if the plan violates law, lacks financial stability, or harms members or the public. After commissioner approval, the cooperative must seek member approval and file conversion documents with the Department of Financial Institutions. Upon completion, the new corporation inherits all assets and obligations of the original cooperative, which ceases to exist, while retaining the cooperative’s original incorporation date. This applies specifically to cooperatives organized to operate nonprofit healthcare plans.