{"data":{"id":"us-ky/krs-304.15-100","jurisdiction":"us-ky","citation":"KRS 304.15-100","heading":"Dividends.","body":"(1) There shall be a provision in participating policies that, beginning not later than the\nend of the third policy year, the insurer shall annually ascertain and apportion the\ndivisible surplus, if any, that will accrue on the policy anniversary or other divi dend\ndate specified in the policy provided the policy is in force and all premiums to that\ndate are paid. Except as hereinafter provided, any dividend becoming payable shall\nat the option of the party entitled to elect such option be either:\n(a) Payable in cash, or\n(b) Applied to any one (1) of such other dividend options as may be provided by\nthe policy. If any such other dividend options are provided, the policy shall\nfurther state which option shall be automatically effective if such party shall\nnot have  elected some other option. If the policy specifies a period within\nwhich such other dividend option may be elected, such period shall be not less\nthan thirty (30) days following the date on which such dividend is due and\npayable. The annually apportioned dividend shall be deemed to be payable in\ncash within the meaning of paragraph (a) of this subsection even though the\npolicy provides that payment of such dividend is to be deferred for a specified\nperiod, provided such period does not exceed six (6) years  from the date of\napportionment and that interest will be added to such dividend at a specified\nrate.\n(2) Renewable term policies of ten (10) years or less may provide that the surplus\naccrued to such policies shall be determined and apportioned each year after the\nsecond policy year, and accumulated during each renewal period, and that at the end\nof the renewal period, on renewal of the policy by the insured, the insurer shall\napply the accumulated surplus as an annuity for the next succeeding renewal term in\nthe reduction of premiums.\n(3) In participating industrial life insurance policies, in lieu of the provision required in\nsubsection (1) of this section, there shall be a provision that, beginning not later\nthan the end of the fifth policy year, the pol icy shall participate annually in the\ndivisible surplus, if any, in the manner set forth in the policy.\n(4) This section does not apply as to insurance issued in consideration of lapsed or\nsurrendered policies.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17206","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:44Z","sha256":"cc9430119e20d7ed613eb628d524e29f49d346effd7a09fadf28bed3205d8efb","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.15-090","next":"us-ky/krs-304.15-110"},"notice":"GroundRules: Original legal text. Not legal advice."}