KRS 304.27-280: Impaired reciprocals.

(1) If the assets of a domestic reciprocal insurer are at any time insufficient to discharge

its liabilities, other than any liability on account of funds contributed by the attorney

or others, and to maintain the required surplus, its attorney shall forthwith make up

the deficiency or levy an assessment upon the subscribers for the amount needed to

make up the deficiency; but subject to the limitation set forth in the power of

attorney or policy.

(2) If the attorney fails to make up such deficiency or to make the assessment within

thirty (30) days after the commissioner orders him or her to do so, or if the

deficiency is not fully made up within sixty (60) days after the date the assessment

was made, the insurer shall be deemed insolvent and shall be proceeded against as

authorized by this code.

(3) If liquidation of such an insurer is ordered, an assessment shall be levied upon the

subscribers for such an amount, subject to limits as provided by this subtitle, as the

commissioner determines to be necessary to d ischarge all liabilities of the insurer,

exclusive of any funds contributed by the attorney or other persons, but including

the reasonable cost of the liquidation.