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304.32-140 Guarantee fund -- Investments -- Risk-based capital requirements.
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No corporation subject to provisions of this subtitle shall be permitted to do any
business in this state unless, in addition to the other requirements of law, it
shall have and maintain liquid reserves in an amount not less than five percent
(5%) of the corporation's subscription income collected in the preceding year
not exceeding two million dollars ($2,000,000), plus two and one-half percent
(2.5%) of income exceeding two million dollars ($2,000,000) but not exceeding
ten million dollars ($10,000,000), plus one percent (1%) of income exceeding
ten million dollars ($10,000,000); but in no event shall reserves be less than
five hundred thousand dollars ($500,000). All corporations subject to the
provisions of this subtitle shall place on deposit with the commissioner a
guarantee fund of cash or approved securities in an amount determined by this
formula, but not less than five hundred thousand dollars ($500,000) nor more
than one million five hundred thousand dollars ($1,500,000). Any amount of
liquid reserves required by this subsection in excess of one million five hundred
thousand dollars ($1,500,000) shall be maintained by the corporation at all
times, but shall not be required to be placed on deposit, provided that the
corporation shall be allowed a period of five (5) years after July 15, 1982, to
establish the liquid reserves and deposit the guarantee fund with the
commissioner. A corporation subject to the provisions of this subtitle shall at all
times comply with the risk-based capital requirements as established in
administrative regulations promulgated by the commissioner.
The cash or securities representing the guarantee fund required by this section
shall be acceptable to the commissioner and the securities shall be negotiable
securities.
The investments of a corporation subject to the provisions of this subtitle shall
be the same kind of investments which life insurance companies are
authorized to have.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1419, effective July 15, 2010. -Amended 2004 Ky. Acts ch. 24, sec. 38, effective July 13, 2004. -- Amended
2000 Ky. Acts ch. 255, sec. 1, effective July 14, 2000. -- Amended 1982 Ky.
Acts ch. 128, sec. 6, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301,
subtit. 32, sec. 14, effective June 18, 1970.
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