{"data":{"id":"us-ky/krs-299.060","jurisdiction":"us-ky","citation":"KRS 299.060","heading":"Emergency fund -- Creation -- Use -- Administration on discontinuance of","body":"business -- Reserve fund.\n(1) Each company shall provide in its contracts with policyholders for the accumulation\nof an emergency fund. From the money realized from the admission  fees and dues\npaid by the policyholders, two percent (2%) shall be deducted and set apart as an\nemergency fund, which shall be invested in securities in which insurance companies\nare allowed by law to invest their capital. This emergency fund, together wi th the\nincome thereon, shall be a trust fund for the payment of death and disability claims,\nand may be applied to that purpose whenever an actual emergency arises\nnecessitating the use thereof, to avoid levying assessments upon policyholders to\nmeet the e mergency. Whenever the emergency fund or any part thereof is so used,\nthe amount used shall be replaced, as soon as possible, out of any future surplus\nfund the company may accumulate.\n(2) When a company discontinues business, any circuit judge may appoint  a receiver to\nadminister any unexhausted portion of the emergency fund. The receiver shall\nreceive such compensation, not to exceed five percent (5%) when the assets exceed\nfive thousand dollars ($5,000) as the court may allow him. The receiver shall use\nthe fund, first, in the payment of accrued claims upon policies, or if insufficient to\npay such claims in full, they shall be paid pro rata; second, if a balance remains, in\nthe payment of like claims thereafter accruing in the order of their accruance.\n(3) Nothing contained in this chapter is intended to prevent the creation of a reserve\nfund by any company, which fund or its accretions, or both, are to be used for the\npayment of assessments or death losses, or for benefits in case of physical disability\nonly.","path":["KRS Chapter 299"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=15827","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:26Z","sha256":"857b469af1b34582babbd28e546f7c9addbaab251cfa9c85fdb608304383cce1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-299.050","next":"us-ky/krs-299.070"},"notice":"GroundRules: Original legal text. Not legal advice."}