KRS 304.27-160: Determining financial condition.

In determining the financial condition of a reciprocal insurer the commissioner shall

apply the following rules:

(1) The commissioner shall charge as liabilities the same reserves as are required of

incorporated insurers issuing nonassessable policies on a reserve basis;

(2) The surplus deposits of subscribers shall be allowed as assets, except that any

premium deposit delinquent for ninety (90) days shall first be charged against such

surplus deposit;

(3) The surplus deposits of subscribers shall not be charged as a liability;

(4) All premium deposits delinquent less than ninety (90) days shall be allowed as

assets;

(5) An assessment levied upon subscribers, and not collected shall be allowed as assets;

(6) The contingent liability of subscribers shall not be allowed as an asset; and

(7) The computation of reserves shall be based upon premium deposits other than

membership fees and without any deduction for the compensation of the attorney.