Title XXV, Business and Financial Institutions

Examination by commissioner -- Notification to Secretary of State. (1) As used in this section, "company": (a) Means an entity organized under: 1. This chapter; or 2. Any law of this state for the purpose of transacting the business of insurance upon the cooperative or assessment…

(1) Every company licensed under this chapter shall provide to the commissioner a list of its officers and directors, their names, addresses, principal business activities, and occupations or employment. (2) Every company licensed under this chapter shall file with the commission…

cooperative or assessment plan. (1) Any company that issues any certificate, policy or other evidence of interest to, or makes any agreement with, its members, whereby any money, charity, relief, aid or other benefit is to be paid, provided or rendered by the company to the membe…

(1) Persons desiring to form an organization for the purpose of transacting the business of life or casualty insurance, or both, upon the assessment or cooperative plan, may associate together and effect an organization as prescribed in this section. (2) Any number of persons not…

When may begin business. Upon filing in the office of the commissioner the required articles of incorporation, together with a sworn statement by three (3) of the incorporators that at least two hundred (200) persons, eligible under the proposed laws of the company to membership …

companies prohibited. On June 21, 1974 no company not previously licensed shall be licensed to engage in the business of life and casualty insurance as set forth in KRS 299.020 through 299.215.

fund -- Rights of holders of certificates. (1) The guaranty fund required by KRS 299.040 may be raised by the issue and sale of guaranty fund certificates in denomination of not less than five dollars ($5) nor more than one thousand dollars ($1,000) each, to be sold for not less …

business -- Reserve fund. (1) Each company shall provide in its contracts with policyholders for the accumulation of an emergency fund. From the money realized from the admission fees and dues paid by the policyholders, two percent (2%) shall be deducted and set apart as an emerg…

force. (1) Articles of incorporation filed under KRS 299.030 shall be considered as abandoned, and shall become inoperative and void, unless the incorporators perfect their organization thereunder and issue certificates of membership within one (1) year from the date of filing th…

books. (1) Every company shall hold, within the county in which its principal office is located in this state, a stated annual meeting of its members or policyholders, or representatives of local boards or subordinate bodies, in the manner and subject to the regulations, restrict…

At the stated meeting for the election of officers, trustees, directors or managers, an attendance of a majority of the persons entitled to vote at the meeting shall not be necessary for a quorum. A failure to elect on the day designated for the meeting shall not dissolve a compa…

Every company shall, by March 1 of each year, make and file with the commissioner a report of its affairs and operations during the year ending on December 31 immediately preceding. The report shall be upon blank forms provided by the commissioner, and shall be verified under oat…

accompany policy -- Use as evidence -- Type size. All policies issued by a company to persons within this state, which policies contain any reference to the application of the insured, or the bylaws or rules of the company, either as forming part of the policy or contract between…

payment. Every policy issued by a company shall specify the sum of money that the company promises to pay upon the contingency insured against, which shall not be larger than the amount of one (1) assessment upon the entire membership, and shall specify the number of days after s…

(1) No company shall issue a policy upon the life of any person more than sixty (60) years of age, but in case of the transfer or reinsurance of members as provided in KRS 299.210 the foregoing limit of age shall not apply to members who have reached sixty (60) years since their …

(1) Each notice of assessment made by a company upon its members shall truly state the cause and purpose of the assessment, the amount paid on the last death claim paid, the cause of death and character of disease, the name of the deceased member, and the maximum face value of th…

A company shall have the right and shall be afforded the opportunity to have any policyholder claiming to be sick or injured examined by its physician as often as it may reasonably require during the pendency of any claim for sick or accident benefits. No action at law or in equi…

Impounding of collections. If the director is satisfied, on investigation, that a company has refused or failed to make a payment as required by KRS 299.140 for thirty (30) days after it became due, and after proper demand, he shall notify the company to suspend business until th…

close business and appoint receiver. When the commissioner has given the notice required by KRS 299.180, he or she shall proceed without delay to investigate the condition of the company, and shall have full power, in person or by deputy, to examine its books, papers and accounts…

claim. The officers of a company who refuse or neglect, for a period of sixty (60) days after the filing of satisfactory proof of the death of any policyholder, where the claim is not disputed on account of fraud or want of validity and where the death or emergency fund is not su…

(1) An assessment or cooperative life insurance company, including such companies as are organized under the provisions of KRS Chapter 303 and KRS 304.32-010 to 304.32-270, may be wholly reinsured in, and its assets to the extent required to establish adequate reserves transferre…

(1) The commissioner shall collect and pay into the State Treasury the following fees relative to assessment or cooperative life or casualty insurance companies: (a) For filing a copy of articles of incorporation of the company, $10; and (b) For filing annual statement of the com…

mutual plan. Any domestic company may, upon complying with the provisions of KRS 299.230 to 299.300, become a life insurance company upon the mutual or stock plan, subject to the laws of this state applicable to such companies, and those prescribing how articles of incorporation …

Notice of the proposal to change the form of the corporate organization to the stock or mutual plan, and of the time and place of a meeting of the policyholders of the company to take action thereon, shall be published pursuant to KRS Chapter 424. In order to effect the change pr…

(1) At the meeting to change the form of the company, if the proposed change is approved, the amount of the capital stock of the reorganized company shall be fixed within the limits prescribed by law for companies of the type to which the change is made, and the par value of the …

The reorganized company may not do any business as a stock company until the amount of stock determined as provided in KRS 299.240, and as authorized by law, has been subscribed and paid for, at not less than par, and the provisions of the law concerning stock companies have been…

If the articles of incorporation of the reorganized company so specify, the company may write any sort of business permitted by law to life insurance companies on the mutual or stock plan, and may also write life, health and accident insurance on the industrial plan.

Upon the receipt of the certificate from the commissioner authorizing the reorganized company to do business upon the stock or mutual plan, the stockholders may elect from among themselves directors, in accordance with the articles of incorporation and bylaws of the company and t…

(1) Any company reorganized as a life insurance company on the mutual or stock plan shall, unless a higher method of valuation is provided for in its assessment policies previously written, value each of such policies as an ordinary life policy in force for one (1) year before th…

(1) Any surplus that may be found to exist in the assets of the assessment or cooperative company over and above all its liabilities, including the legal reserve for all outstanding policies in force, as ascertained and certified by the director, at the date of its reorganization…

change -- Additional reserve fund. (1) The commissioner, upon request and the payment to him of the usual fees, shall ascertain and certify the proportionate interest, in the assets of the cooperative or assessment company before its reorganization, of each of the policyholders o…

insurance other than life -- Membership -- Preliminary bond. (1) Twenty-five (25) or more persons residing in any one or more adjoining municipalities, or in any county, or in not more than ten (10) adjoining counties, who collectively own property of the value of fifty thousand …

Upon filing the required articles in the office of the commissioner, together with a sworn statement by three (3) of the incorporators that bona fide agreements have been entered into for the insurance of property of an amount not less than $100,000 within the territory in which …

office. (1) No company shall insure any property located outside the limits of the territory comprised in its certificate of incorporation, except that when a member lives on or near the boundary line and has property both within and without the prescribed boundary, his property …

Quorum -- Bonds. Every municipal company shall have not less than five (5) directors, and every county or county and municipal company shall have not less than eleven (11). The directors shall be chosen from and by the members of the company, at the regular meeting of the company…

(1) The regular meeting of the company shall be held as prescribed in the bylaws, and if not otherwise provided for shall be held on the second Tuesday of January each year. At this meeting each person insured shall have one (1) vote, and those having two thousand dollars ($2,000…

(1) A company may classify the property or buildings insured therein, either at the time of insurance or at any other time, in the manner provided for in the bylaws. All classifications shall be made uniform as between all members of the company. (2) Requirements as to the separa…

All portions of membership fees, policy fees, and assessments not necessarily used for expenses of writing insurance and payment of losses and expenses accrued at the time of their collection shall constitute a reserve fund, which may be used from time to time in anticipation of …

force. (1) The directors of every company shall cause to be issued policies of insurance signed by their president and secretary, agreeing in the name of the company to pay all losses or damages, not exceeding the amount insured, caused by the risk insured against, as provided by…

(1) Every person insured by a company shall contract in such form as the company may prescribe, which form shall be uniform between all the insured, to pay his pro rata share of all losses or damages sustained by any member thereof from any cause specified in the policy of the co…

assessments. (1) Any company may collect such membership fees or policy fees as are provided for in its bylaws, and any portion of the fees not expended for agents' commissions and the expenses of writing insurance shall be placed in the reserve fund of the company. (2) The direc…

After an assessment has been made, the secretary shall notify every policyholder. The notice shall bear the name of the secretary and shall state the amount due the company from the policyholders, the time when and to whom it shall be paid, and the use to be made of the money col…

If the amount of the deposit notes and cash belonging to a company is not sufficient to pay the amount due at any one (1) time to the policyholders on account of losses occasioned by the risks insured against, the limit of liability of each policyholder on any assessment that may…

Refund. (1) An action may be brought by the company against any policyholder to recover all assessments, made upon him under the provisions of KRS 299.310 to 299.470 or under the bylaws of the company, that he neglects or refuses to pay. If the company is compelled to bring actio…

Any member of a company may withdraw therefrom at any time by giving thirty (30) days' written notice to the secretary, paying his share of all claims existing against the company, and surrendering his policy. Members may be admitted who reside or own property within the territor…

The president and secretary of each company shall, on or before March 1 of each year, make a sworn statement to the commissioner showing the condition of the company as of the preceding December 31. The statement shall contain the following information: The amount and kind of pro…