2011 Kentucky Revised Statutes Subtitle 3. Authorization of Insurers and General Requirements 304.3.070 General eligibility for certificate of authority.
KY Rev Stat § 304.3.070 (1996 through Reg Sess) What's This?
304.3-070 General eligibility for certificate of authority.
(1)
(2)
To qualify for and hold authority to transact insurance in this state, an insurer must
be otherwise in compliance with this code and with its charter powers, and must be
an incorporated stock or mutual insurer, or a combined stock and mutual life
insurer, or a reciprocal insurer, or Lloyd's plan insurer, of the same general type as
may be formed as a domestic insurer under this code, except that:
(a) No foreign insurer shall be authorized to transact insurance in this state which
does not maintain reserves as required by Subtitle 6 as applicable to the kind
or kinds of insurance transacted by such insurer, wherever transacted in the
United States; or which transacts business anywhere in the United States on
the assessment plan, or stipulated premium plan, or any similar plan;
(b) No insurer shall be authorized to transact a kind of insurance in this state
unless duly authorized or qualified to transact such insurance in the state or
country of its domicile;
(c) No insurer shall be authorized to transact in this state any kind of insurance
which is not within the definition as set forth in Subtitle 5;
(d) No such authority shall be granted or continued as to any insurer while in
arrears to the state for fees, licenses, taxes, assessments, fines or penalties
accrued on business previously transacted in this state;
(e) A combined stock and mutual life insurer must maintain separate accounting
for income, expenses, assets, liabilities and surplus funds allocated between
the "mutual" branch and the "stock" branch, in a manner as provided by a
regulation to be promulgated by the commissioner. The "mutual" branch shall
not invest any moneys in equity securities of the "stock" branch, nor shall it
loan any moneys to the "stock" branch. The "stock" branch shall not loan any
moneys to the "mutual" branch; and
(f) A life insurer in forming the "stock" branch or the "mutual" branch of a
combined stock and mutual life insurer, must possess the capital funds
required pursuant to KRS 304.3-120 for the stock branch, and must possess
the surplus funds required under KRS 304.24-100 for the mutual branch. The
commissioner shall not grant a certificate of authority to any life insurer to
conduct its business as a combination stock and mutual life insurer, unless the
aforesaid capitalization requirements are fulfilled.
In determining the solvency of or impairment to any foreign or alien insurer which
is requesting the issuance or continuance of any certificate of authority to do
business in this state, the commissioner may admit as assets only those items which
would qualify as admitted assets for a domestic insurer similarly situated.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 958, effective July 15, 2010. -- Amended
1984 Ky. Acts ch. 343, sec. 3, effective July 13, 1984. -- Created 1970 Ky. Acts
ch. 301, subtit. 3, sec. 7, effective June 18, 1970.
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