Kentucky Statutes 304.24-619 – Dividend preservation provisions
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(1) No dividend preservation provisions shall provide in any way or substitute for the distribution of consideration to eligible members upon extinguishing their membership interests.
(2) Any dividend preservation provision may be limited to participating individual life insurance policies and participating individual annuity contracts in force or deemed to be in force by the plan of conversion on the effective date of the plan of conversion for which the converting mutual insurer has an experience-based dividend scale due, paid, or accrued by action of the board of directors of the converting mutual in the year in which the plan of reorganization is adopted, except that:
(a) Policies that would be included but for the fact that their recent issuance results in no dividends for an initial period, may be included;
(b) Policies that are in force as extended term insurance may be included; and
(c) Other categories of policies and benefits not described in this subsection may be included or excluded with approval of the commissioner.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1358, effective July 15, 2010. — Created
2000 Ky. Acts ch. 42, sec. 11, effective July 14, 2000.
(2) Any dividend preservation provision may be limited to participating individual life insurance policies and participating individual annuity contracts in force or deemed to be in force by the plan of conversion on the effective date of the plan of conversion for which the converting mutual insurer has an experience-based dividend scale due, paid, or accrued by action of the board of directors of the converting mutual in the year in which the plan of reorganization is adopted, except that:
Terms Used In Kentucky Statutes 304.24-619
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
- Year: means calendar year. See Kentucky Statutes 446.010
(a) Policies that would be included but for the fact that their recent issuance results in no dividends for an initial period, may be included;
(b) Policies that are in force as extended term insurance may be included; and
(c) Other categories of policies and benefits not described in this subsection may be included or excluded with approval of the commissioner.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1358, effective July 15, 2010. — Created
2000 Ky. Acts ch. 42, sec. 11, effective July 14, 2000.