304.27-280 Impaired reciprocals.
(1)
(2)
(3)
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 deficiency or levy an assessment upon the subscribers for the amount needed to
make up the deficiency; but subject to the limitation set forth in the power of
attorney or policy.
If the attorney fails to make up such deficiency or to make the assessment within
thirty (30) days after the commissioner orders him or her to do so, or if the
deficiency is not fully made up within sixty (60) days after the date the assessment
was made, the insurer shall be deemed insolvent and shall be proceeded against as
authorized by this code.
If liquidation of such an insurer is ordered, an assessment shall be levied upon the
subscribers for such an amount, subject to limits as provided by this subtitle, as the
commissioner determines to be necessary to discharge all liabilities of the insurer,
exclusive of any funds contributed by the attorney or other persons, but including
the reasonable cost of the liquidation.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1387, effective July 15, 2010. -- Created
1970 Ky. Acts ch. 301, subtit. 27, sec. 28, effective June 18, 1970.
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