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304.24-100 Formation of mutual -- Initial qualifications.
(1)
(2)
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.
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. SurKind 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.
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