{"data":{"id":"us-ky/krs-304.37-505","jurisdiction":"us-ky","citation":"KRS 304.37-505","heading":"Reorganization of domestic mutual insurance company by forming","body":"mutual insurance holding company -- Hearing -- Approval.\n(1) A domestic mutual insurance company, upon approval of the commissioner, may\nreorganize by forming an insurance holding company based upon a mutual plan and\ncontinuing the corporate existence of the reorganizing insurance company as a stock\ninsurance company. The commissioner, after a public hearing conducted in\naccordance with KRS Chapter 13B, if satisfied that the interests of the policyholders\nare properly protected and that the plan of reorganization is fair and equitable to the\npolicyholders, may approve the proposed plan of reorganization and may require as\na condition of approval modification of the proposed plan of reorga nization as the\ncommissioner finds necessary for the protection of the policyholders' interests. A\nreorganization under this section is subject to KRS 304.37 -120(1), (2), (3), (6), and\n(7). The commissioner shall retain jurisdiction over a mutual insurance  holding\ncompany organized under this section to assure that policyholder interests are\nprotected.\n(2) All of the initial shares of the capital stock of the reorganized insurance company\nshall be issued to the mutual insurance holding company. The membersh ip interests\nof the policyholders of the reorganized insurance company shall become\nmembership interests in the mutual insurance holding company. Policyholders of\nthe reorganized insurance company shall be members of the mutual insurance\nholding company in accordance with the articles of incorporation and bylaws of the\nmutual insurance holding company. The mutual insurance holding company shall at\nall times own a majority of the voting shares of the capital stock of the reorganized\ninsurance company.\n(3) A domestic mutual insurance company, upon the approval of the commissioner,\nmay reorganize by merging its policyholders' membership interests into a mutual\ninsurance holding company formed under this section and continuing the corporate\nexistence of the reor ganizing insurance company as a stock insurance company\nsubsidiary of the mutual insurance holding company. The commissioner, after a\npublic hearing conducted in accordance with KRS Chapter 13B, if satisfied that the\ninterests of the policyholders are prop erly protected and that the merger is fair and\nequitable to the policyholders, may approve the proposed merger and may require as\na condition of approval modification of the proposed merger as the commissioner\nfinds necessary for the protection of the poli cyholders' interests. A merger under\nthis section is subject to KRS 304.37 -120(1), (2), (3), (6), and (7). The\ncommissioner shall retain jurisdiction over a mutual insurance holding company\norganized under this section to assure that policyholder interests are protected.\n(4) A merger of policyholders' membership interests in a mutual insurance company\ninto a mutual insurance holding company shall be deemed to be a merger of the\ninsurance companies under Subtitle 37 of KRS Chapter 304.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29946","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:56Z","sha256":"91a4ae0b4ce64f6ac2e9325161e28505129cbc173308ad0565be3c25496a8592","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.37-500","next":"us-ky/krs-304.37-510"},"notice":"GroundRules: Original legal text. Not legal advice."}