{"data":{"id":"us-ky/krs-304.37-140","jurisdiction":"us-ky","citation":"KRS 304.37-140","heading":"Recovery of distributions.","body":"(1) If an order for liquidation or rehabilitation of a domestic insurer has been entered,\nthe receiver appointed under the order shall have the right to recover on behalf of\nthe insurer, from any parent corporation or holding company or person or affiliate\nwho otherwise controlled the insurer, the amount of distributions, other than\ndistribution of shares of the same class of stock paid by the insurer on its capital\nstock, or any payment in the form of a bonus, termination settlement, or\nextraordinary lump sum salary adjustment made by the insurer, or its subsidiary, or\nsubsidiaries to a director, officer, or employee if the distribution or payment is made\nat any time during one (1) year preceding the petition for liquidation, conservation,\nor rehabilitation, as  the case may be, subject to the limitations of subsections (2),\n(3), and (4) of this section.\n(2) No distribution shall be recoverable if the parent or affiliate shows that when paid,\nthe distribution was lawful and reasonable, and that the insurer did no t know and\ncould not reasonably have known that the distribution might adversely affect the\nability of the insurer to fulfill its contractual obligations.\n(3) Any person who was a parent corporation or holding company or a person who\notherwise controlled t he insurer or affiliate at the time the distributions were paid\nshall be liable up to the amount of distributions or payment under subsection (1) of\nthis section received by that person. Any person who otherwise controlled the\ninsurer at the time the distributions were declared shall be liable up to the amount of\ndistributions he would have received if they had been paid immediately. If two (2)\nor more persons are liable with respect to the same distributions, they shall be\njointly and severally liable.\n(4) The maximum amount recoverable under this section shall be the amount needed in\nexcess of all other available assets of the impaired or insolvent insurer to pay the\ncontractual obligations of the impaired or insolvent insurer and to reimburse any\nguaranty fund.\n(5) To the extent that any person liable under subsection (3) of this section is insolvent\nor otherwise fails to pay claims due from it, its parent corporation, holding\ncompany, or person who otherwise controlled it at the time the distribution was paid\nshall be jointly and severally liable for any resulting deficiency in the amount\nrecovered from the parent corporation, holding company, or person who otherwise\ncontrolled it.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29943","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:56Z","sha256":"d4d05ba06c13fa723daa60c7d61eeb6bd09060e8ab781161a338c939574e48ee","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.37-130","next":"us-ky/krs-304.37-150"},"notice":"GroundRules: Original legal text. Not legal advice."}