299.310 Organization of assessment or cooperative company to write certain
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/ky/299-310A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
insurance other than life -- Membership -- Preliminary bond.
(1)Twenty-five
(25)or more persons residing in any one or more adjoining
municipalities, or in any county, or in not more than ten
(10)adjoining counties,
who collectively own property of the value of fifty thousand dollars ($50,000) or
more, may organize a company for the purpose of cooperative or assessment
insurance against:
(a)Loss of or damage to real or personal property of every kind and interest
therein, from any or all hazards or causes, and against loss consequential upon
such loss or damage; and
(b)Legal liability for the death, injury, or disability of any human being, or for
damage to property; and medical, hospital, surgical, and funeral expenses of
persons injured, irrespective of legal liability of the insured, when issued as an
incidental coverage with or supplemental to liability insurance.
Such persons shall make and acknowledge a certificate setting forth their intention
to form such a company, the counties or municipalities in which it intends to do
business, its corporate name, and the place where its principal office is to be
located. Every person insured in such a company who signs an application for
insurance as required by the certificate of incorporation or by the bylaws of the
company shall thereby become a member. Provided, however, that no such
company shall insure against any of the hazards set forth in paragraph
(b)of this
subsection unless it has a net surplus of two million dollars ($2,000,000) or more or
is fully reinsured as to all such hazards by a contract or contracts filed with and
approved by the commissioner.
(2)No money shall be collected by any person on behalf of the company until two
of the members or organizers have given joint bond to the commissioner in the sum
of ten thousand dollars ($10,000), conditioned that all money so collected will be
used as directed by law, and that the affairs of the company will be conducted
according to law. The bond shall be held by the commissioner for the benefit of the
members of the company until the company has become legally incorporated and its
affairs have been examined by an expert accountant, appointed by the
commissioner, and found to be in due and regular form, and immediately thereafter
the bond shall be canceled.
(3)No company shall be formed under KRS 299.310 to 299.470 for the purpose of
transacting any business of insurance other than as prescribed in those sections, and
no company shall insure against any loss other than the ones permitted by those
sections. Any company operating under the provisions of KRS 299.310 to 299.470
as of June 1, 1960, shall be authorized to write all types of insurance allowed under
subsection
(1)of this section without amendment of its charter or articles of
incorporation.
(4)Insurers organized under the provisions of this section are subject to the provisions
of subtitle 36 of KRS Chapter 304 to the extent applicable and not in conflict with
the expressed provisions of this chapter.