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304.24-390 Merger -- Consolidation of insurers.
(1)
(2)
(3)
(4)
(5)
A domestic insurer may merge or consolidate with one (1) or more domestic or
foreign insurers, by complying with the applicable provisions of the statutes of
this state governing the merger or consolidation of corporations formed for
profit, but subject to subsections (2), (3), and (4) of this section.
No such merger or consolidation shall be effectuated unless in advance thereof
the plan and agreement therefor have been filed with the commissioner and
approved in writing by him or her after a hearing thereon. The commissioner
shall give such approval within a reasonable time after such filing unless the
commissioner finds such plan or agreement:
(a) Is contrary to law; or
(b) Inequitable to the stockholders or members of the insurers involved; or
(c) Would substantially reduce the security of and service to be rendered to
policyholders of the domestic insurer in this state or elsewhere; or
(d) Would materially tend to lessen competition in the insurance business in
this state or elsewhere as to the kinds of insurance involved, or would
materially tend to create a monopoly as to such business; or
(e) Is subject to other material and reasonable objections.
No director, officer, agent or employee of any insurer party to such merger or
consolidation, or member of the family of such director, officer, agent, or
employee, shall receive any fee, commission, compensation or other valuable
consideration whatsoever for in any manner aiding, promoting or assisting
therein except as set forth in such plan or agreement.
If members of an insurer are entitled to vote, two-thirds (2/3) of the votes cast
by such members of such insurer, as are represented at the meeting in person
or by proxy, is necessary for the approval of any such agreement or plan.
If the commissioner does not approve any such plan or agreement he or she
shall so notify the insurer in writing specifying his or her reasons therefor.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1343, effective July 15, 2010. -Amended 1982 Ky. Acts ch. 272, sec. 1, effective July 15, 1982. -- Amended
1980 Ky. Acts ch. 256, sec. 1, effective July 15, 1980. -- Created 1970 Ky. Acts
ch. 301, subtit. 24, sec. 39, effective June 18, 1970.
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