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304.24-615 Consideration distributed to eligible members.
(1)
(2)
(3)
(4)
The total aggregate consideration to be distributed to the eligible members shall be
determined under a fair formula. The total aggregate consideration shall not be less
than the converting mutual's total surplus or surplus as regards policyholders; plus
the value of all nonadmitted assets; plus a reasonable present equity in reserves, if
any; minus any adjustments for contributed or borrowed surplus.
The consideration to be distributed to the eligible members shall be cash, stock, or
other securities of the former mutual or of an affiliate, additional paid up insurance
or annuity benefits, or any combination of these forms of consideration or other
forms of consideration described in the plan of conversion and approved by the
commissioner.
The form of consideration to be distributed to a class, category, or group of eligible
members may differ from the form of consideration to be distributed to another
class, category, or group of eligible members. The choice of the form of
consideration may take into account such factors as the type of policies with respect
to which the consideration is being distributed, the country or state of residence or
tax status of the eligible members, the length of time that eligible members have
been members of the converting mutual, or other appropriate factors or
circumstances described in the plan of conversion.
Distribution of all or part of the consideration to some or all of the eligible members
may be delayed, or restrictions on sale or transfer of any stock or other securities to
be distributed to eligible members may be required, for a reasonable period of time
following the effective date of the conversion. That period of time shall not exceed
six (6) months, unless approved by the commissioner.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1356, effective July 15, 2010. -- Created
2000 Ky. Acts ch. 42, sec. 9, effective July 14, 2000.
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