Title XXV, Business and Financial Institutions

Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his or her share of any assessment, as computed and limited in accordance with this subtitle, if: (1) While his or her policy is in force or within one (1) year after …

No one (1) policy or subscriber as to such policy, shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one (1) calendar year, in excess of the amount provided for in the power of attorney or in …

(1) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock and surplus required to be maintained by a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved …

A reciprocal insurer may from time to time return to its subscribers any unused premiums, savings or credits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of risks, or policies, or between subscribers, but this shall not prevent…

Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus, and the return of any unused premium, savings, or credits then …

(1) A domestic reciprocal insurer upon affirmative vote of not less than two-thirds (2/3) of its subscribers who vote on such merger pursuant to due notice and the approval of the commissioner of the terms therefor, may merge with another reciprocal insurer or be converted to a s…

(1) If the assets of a domestic reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed by the attorney or others, and to maintain the required surplus, its attorney shall forthwith make up the deficie…

Persons or associations of persons hereby designated "underwriters" not heretofore authorized, are authorized to transact any insurance, except life, title, or mortgage guaranty insurance in this state, on the Lloyd's plan, by executing articles of agreement expressing their purp…

Policies of insurance may be executed by an attorney or by attorneys-in-fact or other representative, hereby designated "attorney," authorized by and acting for such underwriters. The principal office of such attorneys shall be maintained at such place as may be designated by the…

Underwriters shall file with the commissioner for an original certificate of authority, an application, signed and sworn to by their duly authorized attorney, setting forth in addition to matters required in KRS 304.3-150: (1) The name of the attorney and title under which the bu…

(1) Upon the filing of the documents required, the commissioner shall examine them. If it appears that all the statements made are true and that the rights of the policyholders will be protected thereunder, and that the insurer is otherwise qualified therefor, the commissioner sh…

Additional or substituted underwriters shall be bound in the same manner and to the same extent as original subscribers to the articles of agreement and power of attorney on file with the commissioner, and the acts of the duly appointed deputy or substitute attorney of any attorn…

Underwriters at Lloyd's are required to compute reserve liabilities for all outstanding business and for all incurred losses upon the same basis required for stock insurance companies doing the same classes and character of business in this state.

Action on any policy or contract of insurance made by the attorney for the underwriters may be brought against the attorney or against the attorney and the underwriters or any of them. In an action, summons and process shall be served on either the Secretary of State as provided …

All of the provisions of this subtitle are applicable to underwriters at Lloyd's who are nonresidents of this state, or who maintain their principal office outside of this state, in the same manner that they are applicable to underwriters of Lloyd's who are residents of this stat…

Any incorporated society, order, or supreme lodge, without capital stock, including one (1) exempted under the provisions of subsection (1)(b) of KRS 304.29-371, whether incorporated or not, conducted solely for the benefit of its members and their beneficiaries and not for profi…

(1) A society shall be deemed to be operating on the lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated or admitted in accordance with its laws, rules and ritual. Subordinate lodges shall be required by the laws of the…

A society shall have a representative form of government if: (1) It has a supreme governing body constituted in one (1) of the following ways: (a) An assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their re…

As used in this subtitle: (1) "Benefit contract" shall mean the agreement for provision of benefits authorized by KRS 304.29-161, as that agreement is described in subsection (1) of KRS 304.29- 191. (2) "Benefit member" shall mean an adult member who is designated by the laws or …

(1) A society shall operate for the benefit of members and their beneficiaries by: (a) Providing benefits as specified in KRS 304.29-161; and (b) Operating for one (1) or more social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic or religious purp…

(1) A society shall specify in its laws or rules: (a) Eligibility standards for each and every class of membership. If benefits are provided on the lives of children, the minimum age for adult membership shall be set at not less than age fifteen (15) and not greater than age twen…

Grievance procedures. (1) The principal office of any domestic society shall be located in this state. The meetings of its supreme governing body may be held in any state, district, province or territory wherein the society has at least one (1) subordinate lodge, or in such other…

(1) The officers and members of the supreme governing body or any subordinate body of a society shall not be personally liable for any benefits provided by a society. (2) Any person may be indemnified and reimbursed by any society for expenses reasonably incurred by, and liabilit…

The laws of the society may provide that no subordinate body, nor any of its subordinate officers or members, shall have the power or authority to waive any of the provisions of the laws of the society. The provision shall be binding on the society and every member and beneficiar…

A domestic society organized on or after January 1, 1989, shall be formed as follows: (1) Seven (7) or more citizens of the United States, a majority of whom are citizens of this state, who desire to form a fraternal benefit society, may make, sign and acknowledge before some off…

(1) A domestic society may amend its laws in accordance with the provisions thereof by action of its supreme governing body at any regular or special meeting or, if its laws so provide, by referendum. The referendum may be held in accordance with the provisions of its laws by the…

(1) A society may create, maintain and operate, or may establish organizations to operate, not-for-profit institutions to further the purposes permitted by paragraph (b) of subsection (1) of KRS 304.29-051. The institutions may furnish services free or at a reasonable charge. Any…

(1) A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make reinsurance and authorized to do business in this state, or if not so authorized, on…

(1) A domestic society may consolidate or merge with any other society by complying with the provisions of this section. It shall file with the commissioner: (a) A certified copy of the written contract containing in full the terms and conditions of the consolidation or merger; (…

Any domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of the insurance laws of this state for mutual life insurance companies. A plan of conversion shall be prepared in writing by the board …

(1) A society may provide the following contractual benefits in any form: (a) Death benefits; (b) Endowment benefits; (c) Annuity benefits; (d) Temporary or permanent disability benefits; (e) Hospital, medical or nursing benefits; (f) Monument or tombstone benefits to the memory …

(1) The owner of a benefit contract shall have the right at all times to change the beneficiary or beneficiaries in accordance with the laws or rules of the society, unless the owner waives this right by specifically requesting in writing that the beneficiary designation be irrev…

No money or other benefit, charity, relief or aid to be paid, provided or rendered by any society, shall be liable to attachment, garnishment or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or…

(1) Every society authorized to do business in this state shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided. The certificate, together with any riders or endorsements attached thereto, the laws of the society, the application…

other options. (1) For certificates issued prior to one (1) year after January 1, 1989, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall comply with the provisions of law applicable immediately prior t…

A society shall invest its funds only in such investments as are authorized by the laws of this state for the investment of assets of life insurers and subject to the limitations thereon. Any foreign or alien society permitted or seeking to do business in this state which invests…

(1) All assets shall be held, invested and disbursed for the use and benefit of the society and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment on the surrender of any part thereof, except as provided in the benefit…

Except as herein provided, societies shall be governed by this subtitle and shall be exempt from all other provisions of the insurance laws of this state unless they be expressly designated therein, or unless it is specifically made applicable by this subtitle. Societies shall be…

Every society organized or licensed under this subtitle shall be a charitable and benevolent institution, and all of its funds shall be exempt from all and every state, county, district, municipal and school tax, other than taxes on real estate and office equipment.

(1) Standards of valuation for certificates issued prior to one (1) year after January 1, 1989, shall be those provided by the laws applicable immediately prior to January 1, 1989. (2) The minimum standards of valuation for certificates issued on or after one (1) year from Januar…

(1) Every society transacting business in this state shall annually, on or before the first day of March, file with the commissioner a true statement of its financial condition, transactions and affairs for the preceding calendar year and pay the fee required under KRS 304.4-010 …

Societies which are now authorized to transact business in this state may continue to do business until May 1 next succeeding January 1, 1989. The authority of the societies, and all societies hereafter licensed, may be renewed annually, but in all cases shall terminate on the su…

Societies shall be subject to the provisions of KRS 304.2-210, 304.2-220, 304.2-230, 304.2-240, 304.2-250, 304.2-260, 304.2-270, 304.2-280, 304.2-290, 304.2-300, and Subtitle 2 of this chapter for determining financial condition, market conduct, and business practices.

No foreign or alien society shall transact business in this state without a license issued by the commissioner. Any society desiring admission to this state shall comply substantially with the requirements and limitations of this subtitle applicable to domestic societies. Any soc…

(1) If the commissioner, upon investigation, finds that a domestic society: (a) Has exceeded its powers; (b) Has failed to comply with any provision of this subtitle; (c) Is not fulfilling its contracts in good faith; (d) Has a membership of less than four hundred (400) after an …

(1) If the commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state: (a) Has exceeded its powers; (b) Has failed to comply with any of the provisions of this subtitle; (c) Is not fulfilling its contracts in g…