{"data":{"id":"us-ky/krs-304.24-621","jurisdiction":"us-ky","citation":"KRS 304.24-621","heading":"Use of closed block to preserve dividend expectations.","body":"(1) The provisions of this section apply if a closed block is used for the preservation of\nthe reasonable dividend expectations of eligible members and other policyholders.\n(2) The converting mutual shall prepare a written plan of operation for the closed block,\nconsistent with the requirements of this section and the other applicable\nrequirements of KRS 304.24-600 to 304.24-625.\n(3) The closed block shall be operated for the exclusive benefit of policies and\ncontracts included in it. No costs or expenses incur red in connection with the\nconversion shall be charged to the closed block.\n(4) The assets allocated to the closed block, together with the revenue from the closed\nblock, shall be calculated to be reasonably sufficient to support the business in the\nclosed block until the last policy in the closed block has terminated, including\npayment of claims and those expenses and taxes as are specified in the plan of\nconversion, and to provide for continuation of dividend scales in effect on the\nadoption date of the p lan of conversion, if the experience underlying those scales\ncontinues and for appropriate adjustments in the scales if the experience changes.\n(5) The assets to a closed block shall be specified in the plan of operation and must\nconsist of:\n(a) A list of designated assets of the converting mutual's general account or\nspecified segments, which list shall change periodically to reflect the\nacquisition and disposition of assets;\n(b) A designated portion of each asset of the converting mutual's general account\nor specified segments thereof, which portion shall change periodically to\nreflect the cash flows of the closed block; or\n(c) Assets designated by a combination of the methods described in paragraphs\n(a) and (b) of this subsection.\n(6) The plan of operation shall specify which of those methods of assignment of closed\nblock assets is being used and shall set forth the methods by which the designations\nreferred to in subsection (5) of this section are changed during the course of closed\nblock operations.\n(7) The former mutual shall submit to the commissioner annual reports, in a form\nacceptable to the commissioner, that account for and describe the operations of the\nclosed block; and as specified in the plan of operation provide for annual reviews\nof, and reports and opinions on, the closed block by an independent actuary.\n(8) The plan of operation shall provide for the conditions under which the former\nmutual may terminate the closed block.\n(9) The former mutual shall not distribute any residual assets of the closed block until\nthe plan for distribution of the residual assets is approved by the commissioner.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29590","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"e69a846bea0a6185bcf5cd8b0ee29e6803b416a41ab1f5bafc575121b6fde83a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.24-619","next":"us-ky/krs-304.24-623"},"notice":"GroundRules: Original legal text. Not legal advice."}