KRS 304.37-580: Prohibited ownership interests -- Prohibited acquisition offer to

acquire.

(1) At no time shall the officers, directors, or insiders of the mutual insurance holding

company and its subsidiaries and affiliates beneficially own, in the aggregate, mor e

than eighteen percent (18%) of the voting stock of the insurance company

subsidiary of a mutual insurance holding company, an intermediate holding

company subsidiary of a mutual insurance company, or an insurance company

subsidiary of an intermediate hol ding company subsidiary to a mutual insurance

holding company.

(2) This subsection applies to directors of the mutual insurance holding company and

its subsidiaries and affiliates. These directors shall not purchase or beneficially own,

in the aggregate, m ore than three percent (3%) of the voting stock of an insurance

company subsidiary of a mutual insurance company or an insurance company

subsidiary of an intermediate holding company subsidiary to a mutual insurance

holding company.

(3) No person may direc tly or indirectly offer to acquire or acquire, in any manner,

beneficial ownership of more than fifteen percent (15%) of any class of voting

securities of an insurance company subsidiary of a mutual insurance holding

company, an intermediate holding compan y subsidiary of a mutual insurance

company, or an insurance company subsidiary of an intermediate holding company

subsidiary to a mutual insurance holding company.