KRS 304.24-130: Formation of mutual -- Trust deposit of premiums.

(1) All sums collected by a domestic mutual corporation as premiums or fees on

qualifying applications for insurance therein shall be deposited in trust in a bank or

trust company in this state under a written trust agreement consistent with this

section and w ith paragraph (c) of subsection (3) of KRS 304.24 -120 and 304.24 -

140. The corporation shall file an executed copy of such trust agreement with the

commissioner.

(2) Upon issuance to the corporation of a certificate of authority as an insurer for the

kind o f insurance for which such applications were solicited, all funds so held in

trust shall become the funds of the insurer, and the insurer shall thereafter in due

course issue and deliver its policies for which premiums had been paid and

accepted. The insur ance provided by such policies shall be effective as of the date

of the certificate of authority or thereafter as provided by the respective policies.