2006 Kentucky Revised Statutes - .617   Fairness of method or formula in plan of conversion.

304.24-617 Fairness of method or formula in plan of conversion. In determining whether the method or formula in the plan of conversion is fair and equitable, the executive director may consider the following factors: (1)  Voting rights; (2)  Number of eligible members; (3)  Length of membership in the converting mutual; (4)  Premiums paid by members; (5)  Policy limits; (6)  Risk of line of insurance; (7)  Sources of the proportionate contributions to historical surplus, based on such groupings, classification, historical information, assumptions, and projections as are actuarially sound and reasonable; (8)  For a converting mutual that is a property and casualty company, the net earned premiums each eligible member has paid to the converting mutual, compared to the total net earned premiums paid by all eligible members, in each case during the period of time specified in the plan of conversion; and (9)  Any other relevant factors the executive director may deem appropriate. Effective: July 14, 2000 History:Created 2000 Ky. Acts ch. 42, sec. 10, effective July 14, 2000. Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section. Page 1 of 1