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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.
in. Amt.
Kind of
ns. ea.
Insurance
ubject
Life (i)
1,000
Disability (ii)
15
Life & Health
weekly
ndem.)
Property (iii)
1,000
Casualty (iv)
1,000
excluding surety
and workers'
compensation
Casualty with
1,000
workers'
compensation
(a)
Kind of
Insurance
Life (i)
Disability (ii)
Min. No.
Minimum
of Apps.
Subjects
Premium
Accepted
Covered
Collected
500
500
Annual
500
500
Quarterly
500
500
Quarterly
100
250
Annual
250
500
Annual
250
1,500
Quarterly
(f)
Max.Amt.
Ins. ea.
Subject
(v)
$ 2,500
$ 30
(g)
Deposit of
Min. Surplus Funds
(vi)
$ 500,000
$ 500,000
Life & Health
(weekly
indem.)
$ 3,000
$10,000
$ 500,000
Property (iii)
$ 500,000
Casualty (iv)
$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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