304.37-540 Annual statement -- Limitation on aggregate pledges and encumbrances of assets -- Investment of net worth in subsidiaries. (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.