KRS 304.24-619: Dividend preservation provisions.

(1) No dividend preservation provisions shall provide in any way or substitute for the

distribution of consideration to eligible members upon extinguishing their

membership interests.

(2) Any dividend preservation provision may be limited to participating indi vidual life

insurance policies and participating individual annuity contracts in force or deemed

to be in force by the plan of conversion on the effective date of the plan of

conversion for which the converting mutual insurer has an experience -based

dividend scale due, paid, or accrued by action of the board of directors of the

converting mutual in the year in which the plan of reorganization is adopted, except

that:

(a) Policies that would be included but for the fact that their recent issuance

results in no dividends for an initial period, may be included;

(b) Policies that are in force as extended term insurance may be included; and

(c) Other categories of policies and benefits not described in this subsection may

be included or excluded with approval of the commissioner.