2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 3 - Authorization of Insurers and General Requirements 3.3-070 Eligibility for certificate of authority.
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304.3-070 Eligibility for certificate of authority.
(1)
(2)
(3)
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, or an
association, including incorporated and individual unincorporated underwriters,
meeting the requirements of subsection (3) of this section, 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.
To qualify for and hold authority to transact insurance in this state, an
association, including incorporated and individual unincorporated underwriters,
in addition to meeting the requirements of subsection (1) of this section, shall
have:
(a)
(b)
(c)
(d)
Collective minimum capital and surplus equivalents, net of liabilities, on a
several, not joint, basis of at least two hundred fifty million dollars
($250,000,000) and a central fund containing a balance of at least two
hundred fifty million dollars ($250,000,000);
The incorporated members of the association:
1.
Shall not be engaged in any business, other than underwriting; and
2.
Shall be subject to the same level of regulation and solvency control
by the association's domiciliary regulator as are the unincorporated
members;
An association, including incorporated and individual unincorporated
underwriters that meet the requirements of this subsection, shall not be
deemed a Lloyd's plan insurer as defined in KRS 304.3-040, and shall not
be subject to the requirements of Subtitle 28 of this chapter; and
The underwriting members of an association, including incorporated and
individual unincorporated underwriters, that qualify for and hold authority
to transact insurance in this state pursuant to this section, may also
qualify as eligible surplus lines insurers pursuant to KRS 304.10-070.
Effective:July 15, 2014
History: Amended 2014 Ky. Acts ch. 36, sec. 1, effective July 15, 2014. -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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