KRS 304.24-615: Consideration distributed to eligible members.

(1) The total aggregate consideration to be distributed to the eligible members shall be

determined under a fair formula. The total aggregate consideration shall not be less

than the converting mutual's total surplus or surplus as regards policyholders; plus

the value of all nonadmitted assets; plus a reasonable present equity in reserves, if

any; minus any adjustments for contributed or borrowed surplus.

(2) The consideration to be distributed to the eligible members shall be cash, stock, or

other securities of the former mutual or of an affiliate, additional paid up insurance

or annuity benefits, or any combination of these forms of consideration or other

forms of consideration described in the plan of conversion and approved by the

commissioner.

(3) The form of consideration to be distributed to a class, category, or group of eligible

members may differ from the form of consideration to be distributed to another

class, category, or group of eligible members. The choice of the form of

consideration may take into account such factors as the type of policies with respect

to which the consideration is being distributed, the country or state of residence or

tax status of the eligible members, the length of time that eligible members have

been members of the converti ng mutual, or other appropriate factors or

circumstances described in the plan of conversion.

(4) Distribution of all or part of the consideration to some or all of the eligible members

may be delayed, or restrictions on sale or transfer of any stock or ot her securities to

be distributed to eligible members may be required, for a reasonable period of time

following the effective date of the conversion. That period of time shall not exceed

six (6) months, unless approved by the commissioner.