KRS 304.24-170: Bylaws of mutual.

(1) A domestic mutual insurer shall have bylaws for the government of its affairs. The

insurer's initial board of directors shall adopt original bylaws, subject to the

approval of the insurer's members at the next meeting of members.

(2) The bylaws shall contain provisions, consistent with this code, relating to:

(a) The voting rights of members;

(b) Election of directors, and the number, qualifications, terms of office and

powers of directors;

(c) Annual and special meetings of members;

(d) The number, designa tion, election, terms and powers and duties of the

respective corporate officers;

(e) Deposit, custody, disbursement and accounting for corporate funds;

(f) Fidelity bonds covering officers and employees of the insurer handling its

funds, to be issued by the corporate surety and to be in such amount as may be

reasonable; and

(g) Such other matters as may be customary, necessary, or convenient for the

management or regulation of corporate affairs.

(3) The insurer shall promptly file with the commissioner a c opy, certified by the

insurer's secretary, of its bylaws and of every modification thereof or addition

thereto. The commissioner shall disapprove any bylaw provision deemed by him or

her, after a hearing held thereon, to be unlawful, unreasonable, inadequate, unfair or

detrimental to the proper interests or protection of the insurer's members or any

class thereof. The insurer shall not, after receiving written notice of such

disapproval and during the existence thereof, effectuate any bylaw provision so

disapproved.