2016 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 24 - Domestic Stock and Mutual Insurers 304.24-609 Findings requiring commissioner's approval of plan -- Hiring of experts -- Deposits in anticipation of expenses -- Commissioner may consider effect of insurer's past actions.
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304.24-609 Findings requiring commissioner's approval of plan -- Hiring of experts
-- Deposits in anticipation of expenses -- Commissioner may consider effect of
insurer's past actions.
(1)
(2)
(3)
The commissioner shall approve the plan of conversion if the commissioner finds,
following the hearing, that the plan of conversion:
(a) Complies with the provisions of this chapter and all other applicable laws;
(b) Is fair and equitable to the eligible members and the other policyholders of the
converting mutual;
(c) Is actuarially reasonable and appropriate;
(d) Will not jeopardize the financial stability of the former mutual or prejudice the
interest of its policyholders; and
(e) Provides that the former mutual shall be able to satisfy the requirements for
issuance of a certificate of authority to write the kinds of insurance for which
the converting mutual is presently authorized.
The commissioner shall, at the converting mutual's expense, hire accountants,
actuaries, attorneys, financial advisors, investment bankers, and other experts as
may be necessary to assist the commissioner in reviewing all matters under KRS
304.24-600 to 304.24-625 that are related to the plan of conversion and the
application. The commissioner may at any time require the converting mutual to
deposit an amount of money with the department in anticipation of expenses to be
incurred by the commissioner under this subsection.
The commissioner may consider the effect of any action taken by the converting
insurer within a three (3) year period immediately prior to the filing of the plan of
conversion if the action taken by the insurer has a material effect on the fairness and
equity of the plan of conversion.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1354, effective July 15, 2010. -- Created
2000 Ky. Acts ch. 42, sec. 6, effective July 14, 2000.
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