KRS 304.24-613: Effect of conversion.

(1) Upon the effective date of the plan of conversion:

(a) The converting mutual shall be converted from a domestic mutual insurer to a

domestic stock insurer, and the former mutual shall have all the rights,

privileges, immunities, and powers and shall be sub ject to all the duties and

liabilities of a stock insurer existing under this chapter;

(b) The membership interests of every member and policyholder of the converting

mutual shall be extinguished and cease; and

(c) The rights of every policyholder, certifi cate holder, and other insured of the

converting mutual under any contract of insurance shall continue in force in

accordance with the terms, provisions, and conditions of the contract,

including rights, if any, to dividends.

(2) The former mutual shall be a continuation of the existence of the original

converting mutual. The conversion in no way shall annul, modify, or change any of

the original converting mutual's existing suits, rights, contracts, or liabilities. The

former mutual shall be vested in all the rights, franchises, and interests of the

converting mutual in and to every species of property without any deed or transfer,

and the former mutual shall succeed to all the obligations and liabilities of the

converting mutual and retain all rights and c ontracts existing prior to effectiveness

of the conversion.