{"data":{"id":"us-ky/krs-304.49-226","jurisdiction":"us-ky","citation":"KRS 304.49-226","heading":"Change that materially impacts financial condition or management --","body":"Notification to and approval of commissioner to take material action -- Loans\nto parent company or affiliates.\n(1) If there is any change in the current operations or condition of a captive insurer that\nmaterially impacts the financial condition or management of the captive insurer, the\ncaptive insurer or captive manager shall notify the commissioner, in writing, within\nten (10) business days of the change or event.\n(2) No captive i nsurer shall voluntarily take any of the following material actions\nwithout providing the commissioner at least thirty (30) days' prior written notice\nand receiving the commissioner's approval of the action within the thirty (30) day\nperiod:\n(a) The dissolution of the captive insurer;\n(b) Any sale, exchange, lease, mortgage, assignment, pledge, or other transfer of,\nor granting of a security interest in, all or substantially all of the assets of the\ncaptive insurer;\n(c) Any incurrence of material indebtedness by the captive insurer;\n(d) Any making of a material loan or other material extension of credit by the\ncaptive insurer;\n(e) Any payment or distribution that materially reduces capital and surplus;\n(f) Any merger or consolidation to which the captive ins urer is a constituent\nparty;\n(g) Any conversion of the captive insurer to another business form;\n(h) Any transfer to or domestication in any jurisdiction by the captive insurer; or\n(i) Any material amendment of the organizational documents of the captive\ninsurer, including changes in the officers, directors, owners, captive manager,\nactuary, or auditor.\n(3) A captive insurer may make loans to its parent company or affiliates; however, no\nloans to a parent company or any affiliate shall be permitted without prior written\napproval of the commissioner and shall be evidenced by a note in a form approved\nby the commissioner. The loans shall be evaluated with regard to creditworthiness\nand collateral.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30242","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:00Z","sha256":"8bcfe36eac5d6557c724ba3914011003db55fe4ec35df9684966f8f850f42798","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.49-224","next":"us-ky/krs-304.49-228"},"notice":"GroundRules: Original legal text. Not legal advice."}