2014 Kentucky Revised Statutes CHAPTER 299 - ASSESSMENT OR COOPERATIVE INSURANCE 299.400 Collection and use of membership or policy fees -- Levy and collection of assessments.
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299.400 Collection and use of membership or policy fees -- Levy and
collection of assessments.
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(2)
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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.
The directors or executive committee of the company may declare, levy and
issue assessments in such amounts and at such times as in their judgment is
for the best interests of the company. When the reserve fund equals one and
one-half percent (1.5%) of the insurance in force against fire, and two and
one-half percent (2.5%) of the insurance in force against windstorm, and
one-half of one percent (0.5%) of the insurance in force against any other
hazard, then no assessment shall be made for a greater sum than the amount
of losses and expenses sustained and accrued since the last previous
assessment was issued. All assessments shall be made pro rata upon all
property at such time insured, according to its classification.
If at any time the total liabilities of a company exceed its actual cash assets to
an amount equal to fifty cents ($0.50) for each one hundred dollars ($100) of
insurance held by the company, the secretary shall notify the officer whose
duty it is to call a meeting of the directors or executive committee, and that
officer shall immediately call the directors or executive committee in session.
The directors or executive committee shall, within thirty (30) days, declare, levy
and issue an assessment sufficient to pay all the liabilities of the company that
are in excess of its actual cash assets.
Effective:October 1, 1942
History: Amended 1944 Ky. Acts ch. 80, sec. 2. -- Recodified 1942 Ky. Acts
ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 709a.
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