KRS 304.24-250: Nonassessable policies -- Mutual insurers.

(1) A domestic mutual insurer while maintaining unimpaired surplus funds not less in

amount than the minimum paid -in capital stock and surplus required to be

maintained by a domestic stock insurer, formed under this code, for authority to

transact the same kin ds or kind of insurance, may, upon receipt of the

commissioner's order so authorizing, extinguish the contingent liability to

assessment of its members as to all its policies in force and may omit provisions

imposing contingent liability in all policies currently issued.

(2) The commissioner shall not authorize a domestic insurer to extinguish the

contingent liability of any of its members or in any of its policies to be issued,

unless it qualifies to and does extinguish such liability of all its members an d in all

such policies for all kinds of insurance transacted by it.

(3) A foreign or alien mutual insurer may issue nonassessable policies to its members

in this state pursuant to its charter and the laws of its domicile.