KRS 304.37-565: Hearing -- Agreement to adopt foreign findings -- Notice -- Application

and plan review -- Order -- Revocation -- Notice and documentation of

completion.

(1) A public hearing required by KRS 304.37 -505 and 304.37 -510 shall be conducted

as directed in Subtitle 2 of this chapter and KRS Chapter 13B.

(2) In lieu of an administrative hearing, the commissioner may, upon agreement of the

parties, adopt the findings by the insurance supervisory official of another state.

(3) In addition to any notice req uired by this chapter and KRS Chapter 13B, the

department shall supplement any notice by newspaper publication and broadcast

announcements, in accordance with KRS Chapter 424.

(4) The commissioner may retain at the applicant's expense any attorneys, actuar ies,

accountants, investment bankers, or other experts not otherwise a part of the

commissioner's staff that may be necessary to assist the commissioner in reviewing

the proposed application and plan of reorganization or merger.

(5) Upon receipt of the app lication and plan of reorganization or merger, the

commissioner shall submit any application to the Attorney General for examination.

The Attorney General shall have access to the commissioner's staff and all

consultants retained by the commissioner for re view of the application. The

Attorney General may examine the application and plan of reorganization or merger

for compliance with the standards in KRS 304.37 -555. The Attorney General may

submit written findings and a recommendation of approval, disapprov al, or

conditional approval of the application and plan of reorganization or merger to the

commissioner. Written findings and recommendations shall be delivered to the

commissioner no later than five (5) days prior to the public hearing required by

KRS 304.37-505 and 304.37-510 and shall be entered into the record at the hearing.

(6) The commissioner shall at all times retain jurisdiction over the mutual insurance

holding company and its intermediate holding company subsidiaries with stock

insurance company subsidiaries.

(7) Following the hearing required in KRS 304.37 -505 and 304.37 -510, the

commissioner shall, by order, approve, conditionally approve, or deny an

application. The commissioner may require, as a condition of approval of the

proposed reorganization, modification of the proposed plan of reorganization as the

commissioner finds necessary. The applicant shall accept required modifications by

filing appropriate amendments to the proposed plan of reorganization with the

commissioner within thirty (3 0) days of the date of the order of the commissioner

requiring modifications. If the applicant does not accept the required modifications

by failing to file the required amendments to the proposed plan of reorganization

within thirty (30) days, the proposed reorganization shall be deemed denied.

(8) An approval or conditional approval of a plan of reorganization shall expire if the

reorganization is not completed within one hundred eighty (180) days unless the

time period is extended by the commissioner upon a showing of good cause.

(9) The commissioner may revoke approval or conditional approval of an applicant's

plan of reorganization if the commissioner finds the applicant has failed to comply

with the plan of reorganization. The commissioner may compel c ompletion of a

plan of reorganization unless the plan is abandoned in its entirety. The

commissioner shall retain jurisdiction over the applicant until a plan of

reorganization has been completed.

(10) Upon completion of all elements of a plan of reorganiz ation and any conditions

placed on the reorganization by the commissioner, the applicant shall provide a

notice of and documentation of completion to the commissioner.

(11) Within twelve (12) months after the commissioner receives the notice specified in

subsection (9) of this section, the commissioner shall examine the affairs,

transactions, accounts, records, and assets of the mutual holding company,

reorganized insurer, and its affiliated persons for compliance with the plan of

reorganization and for protection of policyholder interests.