Kentucky Statutes 304.37-540 – Annual statement — Limitation on aggregate pledges and encumbrances of assets — Investment of net worth in subsidiaries
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(1) In addition to any other items required to be filed with the department under this chapter, each mutual insurance holding company shall supply to the Department of Insurance, by March 1 of each year, an annual statement consisting of the following:
(a) An income statement; (b) A balance sheet;
(c) A cash flow statement;
(d) Complete information on the status of any closed block of business formed as a part of a plan or reorganization;
(e) An investment plan covering all assets; and
(f) A statement disclosing any intention to pledge, borrow against, alienate, hypothecate, or in any way encumber the assets of the mutual insurance holding company.
(2) The aggregate pledges and encumbrances of a mutual holding company’s assets shall not affect more than forty-nine percent (49%) of the company’s stock in any subsidiary insurance holding company or subsidiary insurance company that resulted from a reorganization or merger.
(3) At least fifty percent (50%) of the generally accepted accounting practices net worth of a mutual insurance holding company shall be invested in insurance company subsidiaries.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1491, effective July 15, 2010. — Created
1998 Ky. Acts ch. 546, sec. 9, effective July 15, 1998.
(a) An income statement; (b) A balance sheet;
Terms Used In Kentucky Statutes 304.37-540
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Year: means calendar year. See Kentucky Statutes 446.010
(c) A cash flow statement;
(d) Complete information on the status of any closed block of business formed as a part of a plan or reorganization;
(e) An investment plan covering all assets; and
(f) A statement disclosing any intention to pledge, borrow against, alienate, hypothecate, or in any way encumber the assets of the mutual insurance holding company.
(2) The aggregate pledges and encumbrances of a mutual holding company’s assets shall not affect more than forty-nine percent (49%) of the company’s stock in any subsidiary insurance holding company or subsidiary insurance company that resulted from a reorganization or merger.
(3) At least fifty percent (50%) of the generally accepted accounting practices net worth of a mutual insurance holding company shall be invested in insurance company subsidiaries.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1491, effective July 15, 2010. — Created
1998 Ky. Acts ch. 546, sec. 9, effective July 15, 1998.