Kentucky Statutes 304.24-609 – Findings requiring commissioner’s approval of plan — Hiring of experts — Deposits in anticipation of expenses — Commissioner may consider effect of insurer’s past actions
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(1) The commissioner shall approve the plan of conversion if the commissioner finds, following the hearing, that the plan of conversion:
(a) Complies with the provisions of this chapter and all other applicable laws;
(b) Is fair and equitable to the eligible members and the other policyholders of the converting mutual;
(c) Is actuarially reasonable and appropriate;
(d) Will not jeopardize the financial stability of the former mutual or prejudice the interest of its policyholders; and
(e) Provides that the former mutual shall be able to satisfy the requirements for issuance of a certificate of authority to write the kinds of insurance for which the converting mutual is presently authorized.
(2) The commissioner shall, at the converting mutual’s expense, hire accountants, actuaries, attorneys, financial advisors, investment bankers, and other experts as may be necessary to assist the commissioner in reviewing all matters under KRS
304.24-600 to 304.24-625 that are related to the plan of conversion and the application. The commissioner may at any time require the converting mutual to deposit an amount of money with the department in anticipation of expenses to be incurred by the commissioner under this subsection.
(3) The commissioner may consider the effect of any action taken by the converting insurer within a three (3) year period immediately prior to the filing of the plan of conversion if the action taken by the insurer has a material effect on the fairness and equity of the plan of conversion.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1354, effective July 15, 2010. — Created
2000 Ky. Acts ch. 42, sec. 6, effective July 14, 2000.
(a) Complies with the provisions of this chapter and all other applicable laws;
Terms Used In Kentucky Statutes 304.24-609
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Year: means calendar year. See Kentucky Statutes 446.010
(b) Is fair and equitable to the eligible members and the other policyholders of the converting mutual;
(c) Is actuarially reasonable and appropriate;
(d) Will not jeopardize the financial stability of the former mutual or prejudice the interest of its policyholders; and
(e) Provides that the former mutual shall be able to satisfy the requirements for issuance of a certificate of authority to write the kinds of insurance for which the converting mutual is presently authorized.
(2) The commissioner shall, at the converting mutual’s expense, hire accountants, actuaries, attorneys, financial advisors, investment bankers, and other experts as may be necessary to assist the commissioner in reviewing all matters under KRS
304.24-600 to 304.24-625 that are related to the plan of conversion and the application. The commissioner may at any time require the converting mutual to deposit an amount of money with the department in anticipation of expenses to be incurred by the commissioner under this subsection.
(3) The commissioner may consider the effect of any action taken by the converting insurer within a three (3) year period immediately prior to the filing of the plan of conversion if the action taken by the insurer has a material effect on the fairness and equity of the plan of conversion.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1354, effective July 15, 2010. — Created
2000 Ky. Acts ch. 42, sec. 6, effective July 14, 2000.