KRS 304.37-575: Prohibited practices.

The following practices are prohibited:

(1) Borrowing funds from the mutual insurance holding company, or its subsidiaries

and affiliates, to finance the purchase of any portion of a stock offering;

(2) Payment of commissions, "special fees," and any other special payment or

extraordinary compensation to officers, directors, interested persons, and affiliates,

for arranging, promoting, aiding, or assisting in reorganization to a mutual

insurance holding company, or for arranging, promoting, aiding, assisting, or

participating in the structuring and placement of a stock offering; and

(3) Entering into an understanding or agreement transferring legal or beneficial

ownership of stock to another person in avoidance of these rules.