299.400 Collection and use of membership or policy fees -- Levy and collection of
273 words·~1 min read·
/ky/299-400A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
assessments.
(1)Any company may collect such membership fees or policy fees as are provided for
in its bylaws, and any portion of the fees not expended for agents' commissions and
the expenses of writing insurance shall be placed in the reserve fund of the
company.
(2)The directors or executive committee of the company may declare, levy and issue
assessments in such amounts and at such times as in their judgment is for the best
interests of the company. When the reserve fund equals one and one-half percent
(1.5%) of the insurance in force against fire, and two and one-half percent (2.5%) of
the insurance in force against windstorm, and one-half of one percent (0.5%) of the
insurance in force against any other hazard, then no assessment shall be made for a
greater sum than the amount of losses and expenses sustained and accrued since the
last previous assessment was issued. All assessments shall be made pro rata upon
all property at such time insured, according to its classification.
(3)If at any time the total liabilities of a company exceed its actual cash assets to an
amount equal to fifty cents ($0.50) for each one hundred dollars ($100) of insurance
held by the company, the secretary shall notify the officer whose duty it is to call a
meeting of the directors or executive committee, and that officer shall immediately
call the directors or executive committee in session. The directors or executive
committee shall, within thirty
(30)days, declare, levy and issue an assessment
sufficient to pay all the liabilities of the company that are in excess of its actual cash
assets.