299.290 Use of surplus of former company -- Assets and liabilities.

179 words·~1 min read·/ky/chapter-299/299-290

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Any surplus that may be found to exist in the assets of the assessment or

cooperative company over and above all its liabilities, including the legal reserve

for all outstanding policies in force, as ascertained and certified by the director, at

the date of its reorganization as a stock or mutual company, shall be held as a fund

for the security of the policyholders of the assessment or cooperative company. This

fund shall not, under any circumstances, pass to the ownership of the stockholders

or members of the reorganized company, or be distributed among them, or be used

or encroached upon for the payment of dividends upon the capital stock, but the

fund may be used to pay the losses incurred by the reorganized company upon

policies written upon the cooperative or assessment plan prior to the reorganization.

(2)Upon the completion of its reorganization as a stock company, the assets and

liabilities of the assessment or cooperative company shall become the assets and

liabilities of the stock company, except as otherwise provided in KRS 299.220 to

299.300.