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304.24-601 Definitions for KRS 304.24-600 to 304.24-625.
As used in KRS 304.24-600 to 304.24-625, unless the context requires otherwise:
(1) "Converting mutual" means a domestic mutual insurer that adopts a plan of
conversion under KRS 304.24-603 that will result in the insurer converting into a
domestic stock insurer.
(2) "Eligible member" means:
(a) Any person who is a member of the converting mutual on the date the
converting mutual's board of directors adopts a resolution proposing a plan of
conversion;
(b) Any person who has been a member of the converting mutual within the last
three (3) years prior to the date the converting mutual's board of directors
adopts a resolution proposing a plan of conversion; and
(c) Any person who is a certificate holder under a group policy if the person
meets the condition in paragraph (a) or (b) of this subsection and inclusion of
the certificate holder as an eligible member is necessary for a fair and
equitable distribution.
(3) "Former mutual" means the domestic stock insurer resulting from the conversion of
a converting mutual to a stock insurer pursuant to a plan of conversion in
accordance with KRS 304.24-600 to 304.24-625.
(4) "Membership interests" means:
(a) The voting rights of members of a domestic mutual insurer as provided by law
and by the insurer's articles of incorporation and bylaws; and
(b) The rights of members of a domestic mutual insurer to receive cash, stock, or
other consideration in the event of a conversion to a stock insurer under KRS
304.24-600 to 304.24-625 or a dissolution under KRS 304.24-430.
(5) "Plan of conversion" means the plan of conversion described in KRS 304.24-603
and includes the proposed amendment to the converting mutual's articles of
incorporation, unless the context requires otherwise.
Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 42, sec. 2, effective July 14, 2000.
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