KRS 304.3-080: General eligibility for certificate of authority -- Ownership --

Management.

(1) No certificate of authority or license to transact any kind of insurance business in

this state shall be issued, renewed or continued in effect to any domestic, foreign, or

alien insurance company or other insurance entity which is owned, or financially

controlled in whole or in part by any state of the United States, or by a foreign

government or by any political subdivision of either, or which is an agency of such

state, government or political subdivision, unless such company or entity was so

owned, controlled or constituted prior to January 1, 1957, and was authorized to do

business in this state on or prior to January 1, 1957.

(2) The commissioner shall not grant or continue authority to transact insurance in this

state to any insurer or proposed insurer after a hearing held thereon, if it appears

that:

(a) Any director, officer or other individual materially part of the management is

found by the commissioner after i nvestigation or upon reliable information to

be incompetent, or dishonest, or untrustworthy, or of unfavorable business

repute; or

(b) The managers are so lacking in insurance company managerial experience in

operations of the kind proposed in this state a s to make such operation,

currently or prospectively, hazardous to or contrary to the best interests of the

insurance-buying or investing public of this state; or

(c) The commissioner has good reason to believe it is affiliated directly or

indirectly through ownership, control, management, reinsurance transactions

or other business relations with any person or persons of unfavorable business

repute; or

(d) Its business operations are or have been marked, to the injury of insurers,

stockholders, policyholder s, creditors or the public, by illegality, or by

manipulation of assets, or of accounts, or of reinsurance, or by bad faith.