Title XXV, Business and Financial Institutions

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…

The commissioner shall examine into the management of any company whenever he deems it prudent for the protection of policyholders in this state, but not less frequently than once in every four (4) years. He shall also examine into the management of a company upon the application…

All the provisions of KRS 299.310 to 299.460 shall apply to companies doing business of the kind and upon the plan described in subsection (4) of KRS 299.010 and organized by special charter granted by this state, where those provisions do not conflict with some vested right gran…

cooperative fire insurance companies. Three (3) or more domestic mutual or cooperative and assessment fire insurance companies may organize a reinsurance company to reinsure their risks by certifying to the commissioner their intention and filing with him certificates properly ac…

(1) Any domestic mutual or assessment and cooperative fire insurance company may, with the consent of the directors of the reinsurance company, become a member thereof by filing with the commissioner a certificate of its intention and a certificate showing the vote of its directo…

companies -- Limitation of risks. (1) Reinsurance companies formed under KRS 299.480 may issue policies of reinsurance to and through its member companies only, on their risks, and upon the terms and rates provided for by its bylaws. Such reinsurance companies shall have not less…

insurance companies. (1) Any domestic mutual fire insurance company, or any domestic cooperative and assessment fire insurance company, without amending its charter or articles of incorporation, may by policy, treaty or other agreement, cede to or accept from any other insurance …

Inspection. (1) Complete copies of treaties and contracts for reinsurance, excluding policies for reinsurance, shall be filed with and approved by the commissioner. (2) These copies of treaties of reinsurance shall be open at all times for inspection in the Department of Insuranc…

unauthorized companies. All domestic mutual fire insurance companies referred to in KRS 299.470 or cooperative and assessment fire insurance shall by March 1 of each year, file with the Department of Revenue a report showing the amount of premiums contracted for by them in a rein…

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

Any company operating under the provisions of KRS 299.310 et seq. may become a mutual insurer as defined in Chapter 304 of the Kentucky Revised Statutes upon the approval of such change by two-thirds (2/3) of the authorized vote of the membership of the company, such authorized v…

(1) Any officer, manager, director or agent of a domestic company who consents to aid or promotes any transfer or reinsurance of a risk in violation of KRS 299.210 shall be fined not more than five hundred dollars ($500). (2) Any officer or director who fails to comply with any o…

A burial association desiring to do business in this state shall file with the commissioner of the Department of Insurance a power of attorney as is required of insurance companies, designating the commissioner as the proper person upon whom process may be served.

(1) All policies issued to persons within this state that contain any reference to the application of the insured or the constitution, bylaws or other rules of the association, either as forming a part of the policy or contract between the parties thereto or having any bearing on…

It shall be unlawful for any burial association or any association engaged in the business of issuing contracts, policies or agreements of burial insurance of any kind or character whatsoever or any contracts of a similar nature to issue or cause to be issued any agreement, polic…

contract. (1) Any person, firm, corporation, partnership or undertaking concern, duly and regularly licensed to engage in the undertaking business in the Commonwealth of Kentucky who may desire to perform the provisions of any agreement, policy, contract, bond, assurance or guara…

No agreement, policy, contract, bond, assurance or guarantee of any burial association or association of a similar nature authorized to do business in the Commonwealth of Kentucky is transferable or assignable nor are the benefits or any part thereof transferable or assignable.

Each burial association shall deposit with the custodian of insurance securities to the amount of not less than $100,000, to be held for the benefit of its policyholders. These securities shall be of the kind in which domestic life insurance companies are allowed by law to invest…

(1) All burial associations shall, by March 1 of each year, make and file with the commissioner a report of its affairs and operations during the year ending December 31 immediately preceding. This report shall be upon blank forms furnished by the commissioner and shall be verifi…

(1) If, upon examination of a burial association by the commissioner or any person designated by him to make the examination, it appears that the liabilities of the association exceed its resources, and it cannot in a reasonable time, not more than three (3) months from the date …

Any burial association that fails to comply with the provisions of KRS 303.100 to 303.110 or KRS 303.130 to 303.150 shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500). Each day it engages in business without complying with such provi…

Catchline at repeal: Short title.