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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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