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304.24-120 Formation of mutual -- Applications for insurance.
(1)
(2)
(3)
(4)
(5)
Upon receipt of the commissioner's approval of the bond or deposit as provided in
KRS 304.24-110, the directors and officers of the proposed domestic mutual insurer
may commence solicitation of such requisite applications for insurance policies as
they may accept, and may receive deposits of premiums thereon.
All such applications shall be in writing signed by the applicant, covering subjects
of insurance resident, located or to be performed in this state.
All such applications shall provide that:
(a) Issuance of the policy is contingent upon the insurer qualifying for and
receiving a certificate of authority;
(b) No insurance is in effect unless and until the certificate of authority has been
issued; and
(c) The prepaid premium or deposit, and membership or policy fee, if any, shall
be refunded in full to the applicant if organization is not completed and the
certificate of authority is not issued and received by the insurer before a
specified reasonable date, which date shall be not later than one (1) year after
the date of the certificate of incorporation.
All qualifying premiums collected shall be in cash.
Solicitation for such qualifying applicants for insurance shall be by licensed agents
of the corporation, and the commissioner shall, upon the corporation's application
therefor, issue temporary agent's licenses expiring on the date specified pursuant to
paragraph (c) of subsection (3) of this section to individuals qualified as for a
resident's license except as to the taking or passing of an examination. The
commissioner may suspend or revoke any such license for any of the causes and
pursuant to the same procedures as are applicable to suspension or revocation of
licenses of agent's in general under Subtitle 9.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1328, effective July 15, 2010. -- Created
1970 Ky. Acts ch. 301, subtit. 24, sec. 12, effective June 18, 1970.
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