KRS 304.3-140: Deposit requirement in general.

(1) The commissioner shall not authorize an insurer to transact insurance in this state,

other than an alien insurer or a title insurer, unless it makes and thereafter

continuously maintains on deposit in this state, through the commissioner, cash or

securities eligible for such deposit under the laws of this state, of a fair market value

not less than its minimum required capital stock (if a stock insurer) or minimum

required basic surplus (if a mutual, reciprocal, or Lloyd's plan insurer), for the

protection of the insurer's policyholders or its policyholders and creditors.

(2) The commissioner shall not so authorize a title insurer unless it so deposits and

maintains such cash or securities of a fair market value not less than its minimum

required capital sto ck as a guaranty fund which shall be held as security for the

faithful performance by the insurer of all its undertakings and liabilities under its

title policies or other guarantees of title to property.

(3) The commissioner shall not authorize an alien i nsurer unless it so makes and

thereafter continuously maintains such a deposit, representing funds in excess of all

the insurer's liabilities under insurance contracts in force in the United States of a

fair market value of not less than that required unde r subsection (1) of this section,

as to a like foreign insurer. The deposit shall be held in trust for the protection of the

insurer's policyholders, or its policyholders and creditors, in the United States.

(4) In lieu of such a deposit made or maintained in this state, the commissioner may, in

his or her discretion, accept the certificate in proper form of the public officer

having general supervision of insurers in any other state to the effect that a deposit

of like quality and amount, or part thereof, by such insurer is being maintained for

like purposes in public custody or control pursuant to the laws of such state.

(5) All such deposits in this state are subject to the applicable provisions of Subtitle 8.