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304.3-140 Deposit requirement in general.
(1)
(2)
(3)
(4)
(5)
The commissioner shall not authorize an insurer to transact insurance in this
state, other than an alien insurer or a title insurer, unless it makes and
thereafter continuously maintains on deposit in this state, through the
commissioner, cash or securities eligible for such deposit under the laws of this
state, of a fair market value not less than its minimum required capital stock (if
a stock insurer) or minimum required basic surplus (if a mutual, reciprocal, or
Lloyd's plan insurer), for the protection of the insurer's policyholders or its
policyholders and creditors.
The commissioner shall not so authorize a title insurer unless it so deposits
and maintains such cash or securities of a fair market value not less than its
minimum required capital stock as a guaranty fund which shall be held as
security for the faithful performance by the insurer of all its undertakings and
liabilities under its title policies or other guarantees of title to property.
The commissioner shall not authorize an alien insurer unless it so makes and
thereafter continuously maintains such a deposit, representing funds in excess
of all the insurer's liabilities under insurance contracts in force in the United
States of a fair market value of not less than that required under subsection (1)
of this section, as to a like foreign insurer. The deposit shall be held in trust for
the protection of the insurer's policyholders, or its policyholders and creditors,
in the United States.
In lieu of such a deposit made or maintained in this state, the commissioner
may, in his or her discretion, accept the certificate in proper form of the public
officer having general supervision of insurers in any other state to the effect
that a deposit of like quality and amount, or part thereof, by such insurer is
being maintained for like purposes in public custody or control pursuant to the
laws of such state.
All such deposits in this state are subject to the applicable provisions of
Subtitle 8.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 965, effective July 15, 2010. -Created 1970 Ky. Acts ch. 301, subtit. 3, sec. 14, effective June 18, 1970.
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