{"data":{"id":"us-ky/krs-304.24-360","jurisdiction":"us-ky","citation":"KRS 304.24-360","heading":"Mutualization of stock insurer.","body":"(1) A stock insurer may become a mutual insurer under such reasonable plan and\nprocedure as may be approved by the commissioner after a hearing thereon.\n(2) The commissioner shall not approve any such plan or procedure of mutualization\nunless:\n(a) The commissioner finds that it is equitable to stockholders and policyholders;\n(b) It is subject to approval by the holders of not less than three -fourths (3/4) of\nthe insurer's outstanding capital stock having voting rights, and by not less\nthan two-thirds (2/3) of t he insurer's policyholders, who vote on such plan in\nperson, by proxy, or by mail, pursuant to such reasonable notice and procedure\nas may be approved by the commissioner;\n(c) If a life insurer, the right to vote thereon is limited to holders of policies, other\nthan term or group policies, whose policies have been in force for more than\none (1) year;\n(d) Mutualization will result in retirement of shares of the insurer's capital stock\nat a price not in excess of the fair market value thereof as determined by\ncompetent disinterested appraisers;\n(e) The plan provides for the purchase of the shares of any dissenting stockholder\nin the same manner and subject to the same applicable conditions as provided\nby KRS Chapter 271B as to rights of dissenting stockholders  with respect to\nmerger or consolidation of business corporations;\n(f) The plan provides for definite conditions to be fulfilled by a designated early\ndate upon which such mutualization will be deemed effective; and\n(g) The mutualization leaves the insurer  with surplus funds reasonably adequate\nfor the security of its policyholders and to enable it to continue successfully in\nbusiness in the states in which it is then authorized to transact insurance and\nfor the kinds of insurance included in its certificat es of authority in such\nstates.\n(3) This section shall not apply to mutualization under order of court pursuant to\nrehabilitation or reorganization of an insurer under Subtitle 33 of this chapter.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29568","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"57694015210c75f7cf76ca93706b9c0abef0f4304bb864b18002b0587091bae8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.24-350","next":"us-ky/krs-304.24-370"},"notice":"GroundRules: Original legal text. Not legal advice."}