KRS 304.24-500: Approval of foreign insurer as domestic insurer -- Transfer of domicile

of domestic insurer to another state -- Continuance of certificate of authority

upon transfer of corporate domicile after merger or consolidation.

(1) The purpose of this section is to:

(a) Provide a means whereby any insurer organized under the laws of any other

state may become a domestic insurer;

(b) Provide a means for any domestic insurer to transfer its domicile to another

state; and

(c) Provide a means for the continuatio n of a certificate of authority and other

approvals pertaining to any foreign insurer which transfers its corporate

domicile to another state by merger, consolidation, or any other lawful

method.

(2) Any insurer which is organized under the laws of any oth er state and is admitted to

do business in this state for the purpose of writing insurance may, upon approval of

the commissioner, become a domestic insurer by complying with all of the

requirements of this chapter relating to the organization and authoriz ation of a

domestic insurer of the same type and by designating its principal place of business

at a place in this state. The domestic insurer shall be entitled to like certificates of

authority to transact business in this state, and shall be subject to t he authority and

jurisdiction of this state.

(3) Any domestic insurer may, upon approval of the commissioner, transfer its domicile

to any other state in which it is admitted to transact the business of insurance. Upon

the transfer, the insurer shall cease to be a domestic insurer, and shall be authorized

to transact insurance business in this state if qualified as a foreign insurer. The

commissioner shall approve the proposed transfer unless the commissioner shall

determine the transfer is not in the interest of the policyholders of this state.

(4) The certificate of authority, agents' appointments and licenses, rates, and other items

which the commissioner allows, in the commissioner's discretion, which are in

existence at the time any insurer authorized t o transact the business of insurance in

this state transfers its corporate domicile to this or any other state by merger,

consolidation, or merger pursuant to KRS 271B.11 -070, or any other lawful

method, shall continue in full force and effect upon the tra nsfer if the insurer

remains duly qualified to transact the business of insurance in this state. All

outstanding policies of any transferring insurer shall remain in full force and effect

and need not be endorsed as to the new name of the insurer or its ne w location

unless so ordered by the commissioner. Every transferring insurer shall file new

policy forms with the commissioner on or before the effective date of the transfer

but may use existing policy forms with appropriate endorsements if allowed by, and

under such conditions as approved by, the commissioner. However, every

transferring insurer shall notify the commissioner in writing of the details of the

proposed transfer and shall file promptly appropriate amendments to corporate

documents required to be filed with the commissioner.

(5) (a) Any insurer transferring its domicile in accordance with subsections (2) or (3)

of this section shall file an application for redomestication and transfer of

domicile with the commissioner. This transfer of domicile must be approved

by order of the commissioner. If the commissioner does not approve the

transfer of domicile, the applicant insurer may request a hearing in accordance

with KRS 304.2-310(2)(b).

(b) An applicant filing to become a domestic insurer in accor dance with

subsection (2) of this section shall include a notice of transfer of domicile to

the Secretary of State and the articles, amended articles, or restated articles of

incorporation in compliance with KRS 271B.2-020.

(c) An application filed by a do mestic insurer to transfer its domicile to another

state in accordance with subsection (3) of this section shall include a copy of

the order approving the redomestication issued by the new state of domicile.