{"data":{"id":"us-ky/krs-304.15-400","jurisdiction":"us-ky","citation":"KRS 304.15-400","heading":"Prohibited policy plans.","body":"(1) No life insurer shall hereafter deliver or issue for delivery in this state:\n(a) As part of or in combination with any life insurance, endowment or annuity\ncontract, any agreement or plan, additional to the rights, dividends, and\nbenefits arising out of an y such contract, which provides for the accumulation\nof profits over a period of years and for payment of all or any part of such\naccumulated profits only to members or policyholders of a designated group\nor class who continue as members or policyholders until the end of a specified\nor ascertainable period of years.\n(b) Any \"registered\" policy; that is, any policy purporting to be \"registered\" or\notherwise specially recorded, with any agency of the state of Kentucky or of\nany other state, or with any bank, trust company, escrow company, or other\ninstitution other than the insurer; or purporting that any reserves, assets or\ndeposits are held, or will be so held, for the special benefit or protection of the\nholder of such policy, by or through any such agency or institution.\n(c) Any policy or contract under which any part of the premium or of funds or\nvalues arising from the policy or contract or from investment of reserves, or\nfrom mortality savings, lapses or surrenders, in excess of the normal reserves\nor amounts required to pay death, endowment, and nonforfeiture benefits in\nrespective amounts as specified in or pursuant to the policy or contract, are on\na basis not involving insurance or life contingency features:\n1. To be placed in special funds or segrega ted accounts or special\ndesignated places or\n2. To be invested in specially designated investments or types thereof, and\nthe funds or earnings thereon to be divided among the holders of such\npolicies or contracts, or their beneficiaries or assignees.\nThis provision does not apply as to any contract authorized under KRS\n304.15-390.\n(d) Any policy providing benefits or values for surviving or continuing\npolicyholders contingent upon the lapse or termination of the policies of other\npolicyholders, whether by death or otherwise.\n(e) Any policy containing or referring to one or more of the following provisions\nor statements:\n1. Investment returns or profit sharing, other than as a participation in the\ndivisible surplus of the insurer under a regular participatio n provision as\nprovided for in KRS 304.15-100.\n2. Special treatment in the determination of any dividend that may be paid\nas to such policy.\n3. Reference to premiums as \"deposits.\"\n4. Relating policyholder interest or returns to those of stockholders.\n5. That the policyholder as a member of a select group will be entitled to\nextra benefits or extra dividends not available to policyholders generally.\n(2) This section shall not be deemed to prohibit the provision, payment, allowance or\napportionment of regul ar annual dividends or \"savings\" under regular participating\nforms of policies or contracts.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17245","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:44Z","sha256":"b0a68866cbb6daba4a61eb81d71ccf7d2abecdb5cd7fe3414eb91f63a0448512","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.15-390","next":"us-ky/krs-304.15-410"},"notice":"GroundRules: Original legal text. Not legal advice."}