KRS 299.500: Policies of reinsurance -- Rates -- Directors -- Liability of member

companies -- Limitation of risks.

(1) Reinsurance companies formed under KRS 299.480 may issue policies of

reinsurance to and through its member companies only, on their risks, and u pon the

terms and rates provided for by its bylaws. Such reinsurance companies shall have

not less than five (5) directors, and one (1) director shall be chosen from the officers

of each member company.

(2) The member companies shall be liable for the inde btedness of such reinsurance

company, if its losses and expenses at any time exceed its income and assets, in the

proportion of liability fixed by the bylaws of the reinsurance company. Such

reinsurance company shall not issue policies on one (1) risk for a greater amount

than a sum equal to three cents ($0.03) for each one hundred dollars ($100)

insurance in force in its combined member companies.