Loss of membership

(1) Where a policyholder loses his or her rights as a member of the association, wholly or in part, as a result of a portfolio transfer, and does not become a member of a transferee mutual insurance association, he or she is entitled to an appropriate cash settlement for this loss. The settlement must take into account the association's circumstances at the time the resolution is passed under section 200.
(2) The association may resolve that this entitlement be limited to members who have belonged to the association for at least three months before the resolution.
(3) Every entitled member receives a settlement payment of equal amount. A different distribution may be fixed only by reference to one or more of the following standards: 1. the amount of the sum insured, 2. the amount of the contributions, 3. the amount of the premium reserve in life insurance, 4. the standard specified in the association's articles of association for the distribution of the surplus, 5. the standard specified in the association's articles of association for the distribution of assets, and 6. the length of membership.