Kentucky Statutes 304.24-100 – Formation of mutual — Initial qualifications
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(1) When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance listed in the schedule contained in subsection (2) of this section.
(2) When applying for an original certificate of authority, the insurer must be otherwise qualified therefor under this code, and must have received and accepted bona fide applications as to substantial insurable subjects for insurance coverage of a substantial character of the kind of insurance proposed to be transacted, must have collected in cash the full premium therefor at a rate not less than that usually charged by other insurers for comparable coverages, and must have surplus funds on hand and deposited as of the date such insurance coverages are to become effective, all in accordance with that part of the following schedule which applies to the kind of insurance the insurer proposes to transact:
(a) (b) (c) (d) (e) Min. No. Min. No. Minimum Min. Amt.
Kind of of Apps. Subjects Premium Ins. ea. Insurance Accepted Covered Collected Subject Life (i) 500 500 Annual $1,000
Disability (ii) 500 500 Quarterly $ 15
Life & Health 500 500 Quarterly (weekly indem.)
Property (iii) 100 250 Annual $1,000
Casualty (iv) 250 500 Annual $1,000 excluding surety
and workers’
compensation
Casualty with 250 1,500 Quarterly $1,000 workers’
compensation
(a) (f) (g) Max.Amt. Deposit of Ins. ea. Min. Sur-
Kind of Subject plus Funds Insurance (v) (vi) Life (i) $ 2,500 $ 500,000
Disability (ii) $ 30 $ 500,000
Life & Health (weekly $ 500,000 indem.)
Property (iii) $ 3,000 $ 500,000
Casualty (iv) $10,000 $1,000,000 excluding surety
and workers’ compensation
Casualty with $10,000 $1,500,000
workers’ compensation
Expendable Surplus: In addition to surplus deposited and thereafter to be maintained as
shown in column (g) above, the insurer when first authorized must have on hand surplus funds, which it can thereafter expend in the conduct of its business, in amount not less than $500,000 or 50 percent of the deposited surplus required of it under the above schedule, whichever is the larger amount.
(3) The following provisions are respectively applicable to the foregoing schedule and provisions as indicated by like Roman numerals appearing in such schedule:
(i) No group insurance or term policies for terms of less than ten (10) years shall be included.
(ii) No group, blanket or family plans of insurance shall be included. In lieu of weekly indemnity a like premium value in medical, surgical, and hospital benefits may be provided. Any accidental death or dismemberment benefit provided shall not exceed $2,500.
(iii) Only insurance of the owner‘s interest in real property may be included.
(iv) Must include insurance of legal liability for bodily injury and property damage, to which the maximum and minimum insured amounts apply.
(v) The maximums provided for in this column (f) are net of applicable reinsurance.
(vi) The deposit of surplus in the amount specified in column (g) must thereafter be maintained unimpaired. The deposit is subject to the provisions of Subtitle
8.
Effective: July 5, 1982
History: Amended 1982 Ky. Acts ch. 128, sec. 3, effective July 15, 1982. — Created
1970 Ky. Acts ch. 301, subtit. 24, sec. 10, effective June 18, 1970.
(2) When applying for an original certificate of authority, the insurer must be otherwise qualified therefor under this code, and must have received and accepted bona fide applications as to substantial insurable subjects for insurance coverage of a substantial character of the kind of insurance proposed to be transacted, must have collected in cash the full premium therefor at a rate not less than that usually charged by other insurers for comparable coverages, and must have surplus funds on hand and deposited as of the date such insurance coverages are to become effective, all in accordance with that part of the following schedule which applies to the kind of insurance the insurer proposes to transact:
Terms Used In Kentucky Statutes 304.24-100
- Domestic: when applied to a corporation, partnership, business trust, or limited liability company, means all those incorporated or formed by authority of this state. See Kentucky Statutes 446.010
- Owner: when applied to any animal, means any person having a property interest in such animal. See Kentucky Statutes 446.010
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(a) (b) (c) (d) (e) Min. No. Min. No. Minimum Min. Amt.
Kind of of Apps. Subjects Premium Ins. ea. Insurance Accepted Covered Collected Subject Life (i) 500 500 Annual $1,000
Disability (ii) 500 500 Quarterly $ 15
Life & Health 500 500 Quarterly (weekly indem.)
Property (iii) 100 250 Annual $1,000
Casualty (iv) 250 500 Annual $1,000 excluding surety
and workers’
compensation
Casualty with 250 1,500 Quarterly $1,000 workers’
compensation
(a) (f) (g) Max.Amt. Deposit of Ins. ea. Min. Sur-
Kind of Subject plus Funds Insurance (v) (vi) Life (i) $ 2,500 $ 500,000
Disability (ii) $ 30 $ 500,000
Life & Health (weekly $ 500,000 indem.)
Property (iii) $ 3,000 $ 500,000
Casualty (iv) $10,000 $1,000,000 excluding surety
and workers’ compensation
Casualty with $10,000 $1,500,000
workers’ compensation
Expendable Surplus: In addition to surplus deposited and thereafter to be maintained as
shown in column (g) above, the insurer when first authorized must have on hand surplus funds, which it can thereafter expend in the conduct of its business, in amount not less than $500,000 or 50 percent of the deposited surplus required of it under the above schedule, whichever is the larger amount.
(3) The following provisions are respectively applicable to the foregoing schedule and provisions as indicated by like Roman numerals appearing in such schedule:
(i) No group insurance or term policies for terms of less than ten (10) years shall be included.
(ii) No group, blanket or family plans of insurance shall be included. In lieu of weekly indemnity a like premium value in medical, surgical, and hospital benefits may be provided. Any accidental death or dismemberment benefit provided shall not exceed $2,500.
(iii) Only insurance of the owner‘s interest in real property may be included.
(iv) Must include insurance of legal liability for bodily injury and property damage, to which the maximum and minimum insured amounts apply.
(v) The maximums provided for in this column (f) are net of applicable reinsurance.
(vi) The deposit of surplus in the amount specified in column (g) must thereafter be maintained unimpaired. The deposit is subject to the provisions of Subtitle
8.
Effective: July 5, 1982
History: Amended 1982 Ky. Acts ch. 128, sec. 3, effective July 15, 1982. — Created
1970 Ky. Acts ch. 301, subtit. 24, sec. 10, effective June 18, 1970.