KRS 304.24-260: Nonassessable policies -- Revocation of authority.

(1) The commissioner shall revoke the authority of a domestic mutual insurer to issue

policies without contingent liability if:

(a) At any time the insurer's assets are less than the sum of its liabilities and the

surplus required for such authority; or

(b) The insurer, by resolution of its board of directors approved by a majority of

its members, requests that the authority be revoked.

(2) During the absence of such authority the insurer shall not issue any policy without

providing therein for the contingent l iability of the policyholder, nor renew any

policy which is then in force without indorsing the same to provide for such

contingent liability.