KRS 304.24-617: Fairness of method or formula in plan of conversion.

In determining whether the method or formula in the plan of conversion is fair and

equitable, the commissioner may consider the following factors:

(1) Voting rights;

(2) Number of eligible members;

(3) Length of membership in the converting mutual;

(4) Premiums paid by members;

(5) Policy limits;

(6) Risk of line of insurance;

(7) Sources of the proportionate contributions to historical surplus, based on such

groupings, classification, historical information, assumptions, and projections as are

actuarially sound and reasonable;

(8) For a converting mutual that is a property and casualty company, the net earned

premiums each eligible member has paid to the converting mutual, compared to the

total net earned premiums paid by all eligible members, in each case during the

period of time specified in the plan of conversion; and

(9) Any other relevant factors the commissioner may deem appropriate.