Senate Bill 98 proposes the creation of a new statute, 613.76, which allows health care cooperatives organized to establish and operate nonprofit health care plans to convert into service insurance corporations. The bill outlines a structured process for this conversion, requiring the cooperative to adopt a plan that includes the reasons for conversion, proposed terms, and the new corporation's name and bylaws. The plan must receive approval from the commissioner of insurance before being presented to the cooperative's members for their approval. The commissioner is mandated to approve the plan unless it is found to be contrary to law, inadequate in terms of surplus or contracts, or not in the best interest of the cooperative's members or the public.

Once the conversion plan is approved by both the commissioner and the cooperative's members, the cooperative will file articles of conversion, and the new service insurance corporation will assume all assets and liabilities of the cooperative. The bill also stipulates that the officers and directors of the cooperative will serve as the initial leadership of the new corporation. Additionally, it restricts the payment of compensation to existing personnel during the conversion process, allowing only regular salaries and certain approved expenses for professional services.