KRS 304.33-190: Grounds for liquidation.

(1) The commissioner may apply by petition to the Circuit Court for Franklin County or

for the county in which the principal office of the insurer is located for an order

directing him or her to liquidate a domestic insurer or an alien insurer domiciled in

this state on any one (1) or more of the following grounds:

(a) Any ground on which the commissioner may apply for an order of

rehabilitation under KRS 304.33 -140, whenever he or she believes that

attempts to rehabilitate the insurer would substantially increase the risk of loss

to its creditors, its policyholders or the public, or would be futile, or that

rehabilitators would serve no useful purpose;

(b) That the insurer has commenced, or within the previous year has attempted to

commence, voluntary liquidati on otherwise than under the insurance laws of

this state;

(c) That the holders of two-thirds (2/3) of the shares entitled to vote, or two-thirds

(2/3) of the members or policyholders entitled to vote in an insurer controlled

by its members or policyholders, have consented to a petition.

(2) Upon the issuance of an order directing the commissioner to liquidate a domestic

insurer, the court shall have exclusive jurisdiction over all matters relating to the

liquidation, including but not limited to, the proper scope and application of the

provisions of this subtitle to the liquidation as well as all interpretation and

enforceability of all contracts of insurance to which the insurer is a party.