KRS 299.140: Policy to state contract for payment -- Limit of amount -- Liability for

payment.

Every policy issued by a company shall specify the sum of money that the company

promises to pay upon the contingency insured against, which shall not be larger than the

amount of one (1) assessment upon the entire membership, and shall specify the number

of days after satisfactory proof of the happening of the contingency at the end of which

payment shall be made. Upon the occurrence of the contingency, unless the contra ct has

been voided by fraud or for want of validity, the company shall be obligated to the

beneficiary for payment at the time and to the amount specified in the policy. This

indebtedness shall be a lien upon all the property, effects and bills receivable of the

company, with priority over all indebtedness thereafter incurred, except as otherwise

provided in the case of the distribution of assets of an insolvent company.