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299.430 Action to collect unpaid assessments -- Exclusion of policyholder -Refund.
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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 action in order to collect an
assessment, it may recover the amount assessed with fifty percent (50%)
added thereto, in addition to lawful interest, as a penalty for the neglect and
refusal to pay within the time required.
The officers of a company may proceed to collect any assessment when due
and unpaid for thirty (30) days, and the refusal or neglect on their part to
endeavor to do so, or to perform any of the duties imposed by KRS 299.310 to
299.470, shall render them liable individually for the amount lost by any person
because of such neglect or refusal, and an action may be maintained against
them for such loss.
A policyholder who refuses to pay his assessment may, for that or any other
reason satisfactory to the directors or executive committee, be excluded by a
majority of the directors or executive committee, or as the bylaws may
prescribe, from the company. He shall remain liable for payment of any
assessment made prior to his exclusion, and for the penalty above provided in
case action is brought against him within twelve (12) months after the time the
assessment was due. If any policyholder is excluded as provided in this
subsection, and the policy issued to him is canceled, the secretary shall at
once enter that fact, with the date, upon the records of the company, and notify
the policyholder, in person or by mail, of his exclusion. If by mail, the postage
shall be prepaid and the notice shall be addressed to the address given in the
application or policy, or the last address given the secretary by the
policyholder. From and after the date of personal notice, or five (5) days after
the mailing of notice, the policy shall be canceled and all liability for the policy
shall cease, but the insured shall be entitled to receive from the company a
repayment of an equitable portion of all unearned money in excess of his legal
contribution to the reserve fund to which he has contributed. Not more than
twenty percent (20%) of assessments may be computed as the policyholders'
legal contribution to the reserve fund.
Effective:October 1, 1942
History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from
Ky. Stat. sec. 712.
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