KRS 304.8-020: Deposits to be for benefit of policyholders, creditors, and states.

(1) All deposits shall be held by the commissioner in trust for the benefit and protection

of all of the insurer's policyholders and creditors in the United States.

(2) The deposit of a domestic insurer shall further be security for payment of taxes,

assessments, forfeitures, fines, or other charges due and unpaid to this state or any

other state in which the insurer has been authorized to transact insurance, and may

be applied to the extent as may be necessary for payment.

(3) Except, that deposits required pursuant to the retaliatory provision, KRS 304.3-270,

or required of a domestic insurer pursuant to the laws of another state, may be

limited to the uses and purposes as are consistent with the provision or laws. But no

deposit so required of a domestic insu rer shall be allowed in lieu of or as a credit

upon any deposit required of an insurer under this subtitle if the purpose of the

deposit so required by another state is materially inconsistent with the purpose

stated in subsection (1) of this section.