00RS HB342


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HB 342 (BR 1457) - J. Bruce, J. Gooch

     AN ACT relating to insurance.
     Create new sections of Subtitle 24 of KRS Chapter 304 to provide for a domestic mutual insurance company to convert to a stock company; require the board of directors of the converting mutual to propose a plan of conversion and file application for approval with the commissioner of insurance; specify contents of the application; provide that the commissioner has 90 days to review the plan of conversion; direct the commissioner to hold a hearing; specify criteria plan must meet to be approved; require the plan of conversion to be submitted to a vote of the members of the converting mutual; require the meeting of members to occur no later than 90 days after the issuance of the commissioner's order of approval of the plan of conversion; require the total aggregate consideration to be distributed to the eligible members to be determined under a fair formula; specify the criteria to be used to determine whether the formula is fair and equitable; prohibit dividend preservation provisions that provide in any way or substitute for the distribution of consideration to eligible members upon extinguishing their membership interests; restrict for 5 years the acquisition of beneficial ownership of 5 percent or more of any class of a voting security of the former mutual or any affiliate company without approval of the commissioner; restrict for 1 year the sale or issue of stock by the former mutual or any affiliate company; amend KRS 304.37-120, 304.37-150, and 304.37-525 to conform; repeal KRS 304.24-380, which provided for the conversion of a mutual insurer to a stock insurer.

     Jan 12-introduced in House
     Jan 13-to Banking and Insurance (H)
     Jan 19-posted in committee; posting waived
     Jan 20-reported favorably, 1st reading, to Calendar
     Jan 21-2nd reading, to Rules
     Jan 24-posted for passage in the Regular Orders of the Day for Tuesday, January 25, 2000
     Jan 26-3rd reading, passed 99-1
     Jan 27-received in Senate
     Feb 1-to Banking and Insurance (S)
     Feb 8-reported favorably, 1st reading, to Consent Calendar
     Feb 9-2nd reading, to Rules
     Feb 14-posted for passage in the Consent Orders of the Day for Wednesday, February 16, 2000
     Feb 16-3rd reading, passed 37-0
     Feb 17-received in House; enrolled, signed by Speaker of the House
     Feb 18-enrolled, signed by President of the Senate; delivered to Governor
     Feb 25-signed by Governor (Acts ch. 42)

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