KRS 304.24-601: Definitions for KRS 304.24-600 to 304.24-625.

As used in KRS 304.24-600 to 304.24-625, unless the context requires otherwise:

(1) "Converting mutual" means a domestic mutual insurer that adopts a plan of

conversion under KRS 304.24 -603 that will result in the insurer converting into a

domestic stock insurer.

(2) "Eligible member" means:

(a) Any person who is a member of the converting mutual on the date the

converting mutual's board of directors adopts a resolution proposing a plan of

conversion;

(b) Any person who has been a member of the converting m utual within the last

three (3) years prior to the date the converting mutual's board of directors

adopts a resolution proposing a plan of conversion; and

(c) Any person who is a certificate holder under a group policy if the person

meets the condition in paragraph (a) or (b) of this subsection and inclusion of

the certificate holder as an eligible member is necessary for a fair and

equitable distribution.

(3) "Former mutual" means the domestic stock insurer resulting from the conversion of

a converting mut ual to a stock insurer pursuant to a plan of conversion in

accordance with KRS 304.24-600 to 304.24-625.

(4) "Membership interests" means:

(a) The voting rights of members of a domestic mutual insurer as provided by law

and by the insurer's articles of incorporation and bylaws; and

(b) The rights of members of a domestic mutual insurer to receive cash, stock, or

other consideration in the event of a conversion to a stock insurer under KRS

304.24-600 to 304.24-625 or a dissolution under KRS 304.24-430.

(5) "Plan of conversion" means the plan of conversion described in KRS 304.24 -603

and includes the proposed amendment to the converting mutual's articles of

incorporation, unless the context requires otherwise.