{"data":{"id":"us-ky/krs-299.310","jurisdiction":"us-ky","citation":"KRS 299.310","heading":"Organization of assessment or cooperative company to write certain","body":"insurance other than life -- Membership -- Preliminary bond.\n(1) Twenty-five (25) or more persons residing in any one or more adjoining\nmunicipalities, or in any county, or in not more  than ten (10) adjoining counties,\nwho collectively own property of the value of fifty thousand dollars ($50,000) or\nmore, may organize a company for the purpose of cooperative or assessment\ninsurance against:\n(a) Loss of or damage to real or personal prop erty of every kind and interest\ntherein, from any or all hazards or causes, and against loss consequential upon\nsuch loss or damage; and\n(b) Legal liability for the death, injury, or disability of any human being, or for\ndamage to property; and medical, ho spital, surgical, and funeral expenses of\npersons injured, irrespective of legal liability of the insured, when issued as an\nincidental coverage with or supplemental to liability insurance.\nSuch persons shall make and acknowledge a certificate setting for th their intention\nto form such a company, the counties or municipalities in which it intends to do\nbusiness, its corporate name, and the place where its principal office is to be\nlocated. Every person insured in such a company who signs an application for\ninsurance as required by the certificate of incorporation or by the bylaws of the\ncompany shall thereby become a member. Provided, however, that no such\ncompany shall insure against any of the hazards set forth in paragraph (b) of this\nsubsection unless it has a net surplus of two million dollars ($2,000,000) or more or\nis fully reinsured as to all such hazards by a contract or contracts filed with and\napproved by the commissioner.\n(2) No money shall be collected by any person on behalf of the company unti l two (2)\nof the members or organizers have given joint bond to the commissioner in the sum\nof ten thousand dollars ($10,000), conditioned that all money so collected will be\nused as directed by law, and that the affairs of the company will be conducted\naccording to law. The bond shall be held by the commissioner for the benefit of the\nmembers of the company until the company has become legally incorporated and its\naffairs have been examined by an expert accountant, appointed by the\ncommissioner, and found to be in due and regular form, and immediately thereafter\nthe bond shall be canceled.\n(3) No company shall be formed under KRS 299.310 to 299.470 for the purpose of\ntransacting any business of insurance other than as prescribed in those sections, and\nno co mpany shall insure against any loss other than the ones permitted by those\nsections. Any company operating under the provisions of KRS 299.310 to 299.470\nas of June 1, 1960, shall be authorized to write all types of insurance allowed under\nsubsection (1) o f this section without amendment of its charter or articles of\nincorporation.\n(4) Insurers organized under the provisions of this section are subject to the provisions\nof subtitle 36 of KRS Chapter 304 to the extent applicable and not in conflict with\nthe expressed provisions of this chapter.","path":["KRS Chapter 299"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=15853","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:27Z","sha256":"03a304cb807e7983e970910904fd672023d095b41ebd74edb82b3eea4fb4c34a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-299.300","next":"us-ky/krs-299.320"},"notice":"GroundRules: Original legal text. Not legal advice."}