2016 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 49 - Captive Insurers 304.49-226 Change that materially impacts financial condition or management -- Notification to and approval of commissioner to take material action -- Loans to parent company or affiliates.
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304.49-226 Change that materially impacts financial condition or management -Notification to and approval of commissioner to take material action -- Loans
to parent company or affiliates.
(1)
(2)
(3)
If there is any change in the current operations or condition of a captive insurer that
materially impacts the financial condition or management of the captive insurer, the
captive insurer or captive manager shall notify the commissioner, in writing, within
ten (10) business days of the change or event.
No captive insurer shall voluntarily take any of the following material actions
without providing the commissioner at least thirty (30) days' prior written notice
and receiving the commissioner's approval of the action within the thirty (30) day
period:
(a) The dissolution of the captive insurer;
(b) Any sale, exchange, lease, mortgage, assignment, pledge, or other transfer of,
or granting of a security interest in, all or substantially all of the assets of the
captive insurer;
(c) Any incurrence of material indebtedness by the captive insurer;
(d) Any making of a material loan or other material extension of credit by the
captive insurer;
(e) Any payment or distribution that materially reduces capital and surplus;
(f) Any merger or consolidation to which the captive insurer is a constituent
party;
(g) Any conversion of the captive insurer to another business form;
(h) Any transfer to or domestication in any jurisdiction by the captive insurer; or
(i) Any material amendment of the organizational documents of the captive
insurer, including changes in the officers, directors, owners, captive manager,
actuary, or auditor.
A captive insurer may make loans to its parent company or affiliates; however, no
loans to a parent company or any affiliate shall be permitted without prior written
approval of the commissioner and shall be evidenced by a note in a form approved
by the commissioner. The loans shall be evaluated with regard to creditworthiness
and collateral.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1621, effective July 15, 2010; and ch. 91,
sec. 13, effective July 15, 2010. -- Created 2006 Ky. Acts ch. 252, Pt. XXXIV, sec.
3, effective April 25, 2006.
Legislative Research Commission Note (7/15/2010). References to the "executive
director" of insurance in subsection (3) of this section, as amended by 2010 Ky. Acts
ch. 91, sec. 13, have been changed in codification to the "commissioner" of insurance
to reflect the reorganization of certain parts of the Executive Branch, as set forth in
Executive Order 2009-535 and confirmed by the General Assembly in 2010 Ky. Acts
ch. 24. These changes were made by the Reviser of Statutes pursuant to 2010 Ky.
Acts ch. 24, sec. 1938.
Legislative Research Commission Note (7/15/2010). This section was amended by
2010 Ky. Acts chs. 24 and 91, which do not appear to be in conflict and have been
codified together.
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