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304.24-440 Mutual member's share of assets on liquidation.
(1)
(2)
Upon any liquidation of a domestic mutual insurer, its assets remaining after
discharge of its indebtedness, policy obligations, repayment of contributed or
borrowed surplus, if any, and expenses of administration, shall be distributed to
currently existing persons who had been members of the insurer for at least one (1)
year and who were its members at any time within thirty-six (36) months next
preceding the date such liquidation was authorized or ordered, or date of last
termination of the insurer's certificate of authority whichever date is the earlier;
except, that if the commissioner has reason to believe that those in charge of the
management of the insurer have caused or encouraged the reduction of the number
of members of the insurer in anticipation of liquidation and for the purpose of
reducing thereby the number of persons who may be entitled to share in distribution
of the insurer's assets, the commissioner may enlarge the thirty-six (36) month
qualification period above provided for by such additional period as he or she may
deem to be reasonable.
The insurer shall make a reasonable classification of its policies so held by such
members, and a formula based upon such classification for determining the
equitable distributive share of each such member. Such classification and formula
shall be subject to the approval of the commissioner.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1348, effective July 15, 2010. -- Created
1970 Ky. Acts ch. 301, subtit. 24, sec. 44, effective June 18, 1970.
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