{"data":{"id":"us-ky/krs-304.24-370","jurisdiction":"us-ky","citation":"KRS 304.24-370","heading":"Conversion of stock insurer to ordinary business corporation.","body":"A domestic stock insurer may convert to a Kentucky ordinary business corporation\nthrough the following procedures:\n(1) The insurer shall give the commissioner written notice of its intent to convert to an\nordinary business corporation;\n(2) The insurer shal l bulk reinsure all of its insurance, if any, in force, with another\nauthorized insurer under a bulk reinsurance agreement approved by the\ncommissioner as provided in KRS 304.24 -420. The agreement of bulk reinsurance\nmay be made contingent upon approval of  stockholders as provided in subsection\n(4) of this section;\n(3) The insurer shall set aside funds in a special reserve in such amount and subject to\nsuch administration as may be found by the commissioner to be reasonable and\nadequate for the purpose, for  payment of all obligations, if any, of the insurer\nincurred by it and remaining unpaid under its insurance contracts prior to the\neffective date of such bulk reinsurance, or make other reasonable disposition\nsatisfactory to the commissioner for such payment;\n(4) The proposed conversion shall be approved by affirmative vote of not less than two-\nthirds (2/3) of each class of outstanding securities of the insurer having voting\nrights, at a special meeting of holders of such securities called for the purpose; and\nat such meeting and by a like vote the certificate of organization of the corporation\nshall be amended to remove therefrom the power to transact an insurance business\nas an insurer, to provide for such new powers and purposes authorized by the\ngeneral corporation laws of this state as may be consistent with the purposes for\nwhich the corporation is thereafter to exist, and to make such further alterations in\nthe certificate of organization as may be required under such general corporation\nlaws of an ordinary business corporation;\n(5) Security holders of the corporation who dissent from such proposed conversion\nshall have the same applicable rights as exist under such general corporation laws\nwith respect to dissent from a proposed merger of the corporation; and\n(6) Upon compliance with subsections (1) to (4) of this section, inclusive, and upon\nfiling of the amendment of the certificate of organization with the commissioner\nand otherwise as required by laws applicable to ordinary business corporations, th e\nconversion shall thereupon become effective.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29569","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"7737f7efdb52e6fc95d7c7d0c58265dd488ae0d53a4bb4a3f01ff57d3089aff2","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.24-360","next":"us-ky/krs-304.24-380"},"notice":"GroundRules: Original legal text. Not legal advice."}