304.37-555 Plan of reorganization.
The reorganizing or merging insurer shall file a plan of reorganization, approved by the
affirmative vote of a majority of its board of directors, for review and approval by the
commissioner. The plan shall provide the following:
(1) Establishing a mutual insurance holding company with at least one (1) stock
insurance company subsidiary or one (1) wholly owned intermediate holding
company with a stock insurance subsidiary, the shares of which shall be held
exclusively by the wholly owned intermediate holding company;
(2) Protecting the immediate and long term interests of existing policyholders;
(3) Ensuring immediate membership in the mutual insurance holding company of all
existing policyholders of the reorganizing domestic mutual insurance company;
(4) Providing for membership interest of future policyholders;
(5) Describing the number of members of the board of directors of the mutual insurance
holding company required to be policyholders;
(6) Demonstrating that, in the event of proceedings under Subtitle 33 of KRS Chapter
304 involving a stock insurance company subsidiary of the mutual insurance
holding company which resulted from the reorganization of a domestic mutual
insurance company, the assets of the mutual insurance holding company will be
available to satisfy the policyholder obligations of the stock insurance company;
(7) Describing how any accumulation or prospective accumulation of earnings by the
mutual insurance holding company, which is or would be in excess of that
determined by the board of directors of the mutual insurance holding company to be
necessary, shall inure to the exclusive benefit of the policyholders of its insurance
company subsidiaries who are members;
(8) Describing the nature and content of the annual report and financial statement to be
sent to each member;
(9) Describing the applicant's plan for a stock offering in accordance with the
provisions of KRS 304.37-570; and
(10) Describing other relevant matters the applicant deems appropriate.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1494, effective July 15, 2010. -- Created
1998 Ky. Acts ch. 546, sec. 12, effective July 15, 1998.
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