{"data":{"id":"us-ky/krs-304.24-040","jurisdiction":"us-ky","citation":"KRS 304.24-040","heading":"Incorporation of domestic stock, combined stock and mutual life, or","body":"mutual insurers -- Votes allotted to stockholders and policyholders.\n(1) This section applies to stock, combined stock and mutual life, or mutual insurers\nhereafter incorporated in this state. Such an insurer may be formed for the purpose\nof transacting any kind or kinds of insurance, as well as annuity business.\n(2) Incorporators. Three (3) or more individuals, none of whom is less than eighteen\n(18) years of age, may incorporate a stock insurer; ten (10) or more individuals may\nincorporate a mutual insurer. At least a majority of the incorporators must be\ncitizens of the United States. At least a majority of the incorporators must be\nresidents of Kentucky.\n(3) Articles. The incorpo rators shall deposit the articles of incorporation, in\nquadruplicate originals, with the commissioner, and the articles shall not be filed\nwith the Secretary of State until approved by the commissioner as provided in KRS\n304.24-050, and the commissioner's approval has been stamped upon or otherwise\nattached to the articles. In addition to the applicable requirements of laws in this\nstate governing the incorporation of business corporations generally:\n(a) The name of the corporation, which shall be subject t o KRS 304.3 -100, shall\ncontain the words \"insurance company;\" if a mutual, or a combined stock and\nmutual, the word \"mutual\" must be a part of the name.\n(b) The articles of incorporation shall specify the kind or kinds of insurance\nproposed to be transacted.\n(c) Each share of capital stock shall have a par value of not less than $1.00.\n(d) If a mutual, or a combined stock and mutual life, the articles of incorporation\nshall state the maximum contingent liability of its participating policyholder\nmembers, other than as to nonassessable policies, for payment of losses and\nexpenses incurred. Such liability shall be as stated in the articles of\nincorporation, but shall not be less than one (1) or more than six (6) times the\npremium for member's policy at the annual premium rate for a term of one (1)\nyear.\n(e) The names and residence addresses of the incorporators.\n(4) Unless otherwise provided in the articles of incorporation or an amendment thereto,\neach stockholder of a combined stock and mutual life insurance company shall, at\nall meetings, be entitled to one (1) vote for each share of common stock held by\nhim, and each holder of a policy entitled to participate in profits or savings shall be\na member and, as such, shall be entitled to vote on the same basis to  which he\nwould be entitled in a mutual company under KRS 304.24-210.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29535","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"e696ce739eeef7dc25fda4830fa7876d2a3898c6b61432643bd164e19c082bce","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.24-030","next":"us-ky/krs-304.24-050"},"notice":"GroundRules: Original legal text. Not legal advice."}