KRS 304.24-609: Findings requiring commissioner's approval of plan -- Hiring of experts

-- Deposits in anticipation of expenses -- Commissioner may consider effect of

insurer's past actions.

(1) The commissioner shall approve the plan of conversion if the commissi oner finds,

following the hearing, that the plan of conversion:

(a) Complies with the provisions of this chapter and all other applicable laws;

(b) Is fair and equitable to the eligible members and the other policyholders of the

converting mutual;

(c) Is actuarially reasonable and appropriate;

(d) Will not jeopardize the financial stability of the former mutual or prejudice the

interest of its policyholders; and

(e) Provides that the former mutual shall be able to satisfy the requirements for

issuance of a certificate of authority to write the kinds of insurance for which

the converting mutual is presently authorized.

(2) The commissioner shall, at the converting mutual's expense, hire accountants,

actuaries, attorneys, financial advisors, investment bankers , and other experts as

may be necessary to assist the commissioner in reviewing all matters under KRS

304.24-600 to 304.24 -625 that are related to the plan of conversion and the

application. The commissioner may at any time require the converting mutual to

deposit an amount of money with the department in anticipation of expenses to be

incurred by the commissioner under this subsection.

(3) The commissioner may consider the effect of any action taken by the converting

insurer within a three (3) year period immediately prior to the filing of the plan of

conversion if the action taken by the insurer has a material effect on the fairness and

equity of the plan of conversion.