KRS 304.24-120: Formation of mutual -- Applications for insurance.

(1) Upon receipt of the commissioner's approval of the bond or deposit as provided in

KRS 304.24-110, the directors and officers of the proposed domestic mutual insurer

may commence solicitation of such requisite applications for insurance policies as

they may accept, and may receive deposits of premiums thereon.

(2) All such applications shall be in writing signed by the applicant, covering subjects

of insurance resident, located or to be performed in this state.

(3) All such applications shall provide that:

(a) Issuance of the policy is contingent upon the insurer qualifying for and

receiving a certificate of authority;

(b) No insurance is in effect unless and until the certificate of authority has been

issued; and

(c) The prepaid premium or deposit, and membe rship or policy fee, if any, shall

be refunded in full to the applicant if organization is not completed and the

certificate of authority is not issued and received by the insurer before a

specified reasonable date, which date shall be not later than one ( 1) year after

the date of the certificate of incorporation.

(4) All qualifying premiums collected shall be in cash.

(5) Solicitation for such qualifying applicants for insurance shall be by licensed agents

of the corporation, and the commissioner shall, up on the corporation's application

therefor, issue temporary agent's licenses expiring on the date specified pursuant to

paragraph (c) of subsection (3) of this section to individuals qualified as for a

resident's license except as to the taking or passing o f an examination. The

commissioner may suspend or revoke any such license for any of the causes and

pursuant to the same procedures as are applicable to suspension or revocation of

licenses of agent's in general under Subtitle 9.