A letter from MSSNY to all MSSNY Members:
Dear MSSNY Member:
As you know, in July of 2016, your endorsed carrier MLMIC announced its intention to be acquired by Berkshire Hathaway. We’re pleased to advise you that the transaction is on track and progressing forward in accordance with the measures and actions required under New York Insurance Law Section 7307 (NYIL §7307), designed to protect “the interests of the policyholders and the public.” We are, however, disappointed that the process is taking slightly longer than anticipated. As you know, we anticipated a culmination of the process in the third quarter of 2017. We are now hopeful that the process will be completed by year end 2017. As such, policyholders can expect several major milestones to occur between now and the expected close of the transaction. The estimated timeline for these milestones is currently as follows:
In accordance with NYIL §7307, MLMIC is being examined by the NYS Department of Financial Services (DFS) to assess the financial condition of the Company. That examination is expected to be completed during the second quarter of 2017.
In accordance with NYIL §7307, the DFS will also conduct an independent valuation of the Company to assess the fairness of the cash consideration to be paid by Berkshire to owners of eligible MLMIC policies from July 14, 2013 through July 14, 2016. This valuation is expected to be completed during the third quarter of 2017.
In accordance with NYIL §7307, once the examination and independent valuation are done, MLMIC’s Board will request permission from the Superintendent to submit a Plan of Conversion for approval by DFS. MLMIC will then prepare and disseminate detailed information regarding the Plan of Conversion to all of those who are eligible to vote (i.e. those who were policyholders on July 14, 2016) on this transaction. The Superintendent will then hold a public hearing regarding the Plan of Conversion. Following this hearing, the Superintendent will review the Plan of Conversion, and if approved, will authorize MLMIC to conduct a vote.
In accordance with NYIL §7307, we expect to hold a vote of those eligible to vote on this transaction during the fourth quarter of 2017. If two-thirds or more of those voting elect to proceed with the transaction, the transaction will close and Berkshire will authorize distribution of payments shortly thereafter.
As we progress forward and achieve these milestones, we will provide an update via MSSNY E-News, and on MLMIC’s blog and the “Frequently Asked Questions” webpage. If you have any questions about the transaction, please call 1-888-998-7871.
Thank you for your continued support as we complete this exciting transaction that will deliver a significant financial benefit to those who owned an eligible policy from July 14, 2013 through July 14, 2016 and will enable us to continue to serve our policyholders with high quality liability insurance for many years to come.
Robert A. Menotti, M.D.