SB 281 (BR 1606) - L. Casebier
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.
Feb 17-introduced in Senate
Feb 22-to Banking and Insurance (S)