{"data":{"id":"us-ky/krs-304.24-110","jurisdiction":"us-ky","citation":"KRS 304.24-110","heading":"Formation of mutual -- Bond.","body":"(1) Before soliciting any applications for insurance required under KRS 304.24 -100 as\nqualification for the original certificate of authority, the incorporators of the\nproposed insurer shall file with the commissioner a corporate surety bond in the\npenal sum of one hundred thousand dollars ($100,000), in favor of the state and for\nthe use and benefit of the state and of applicant members and creditors of the\ncorporation. The bond shall be conditioned as follows:\n(a) For the prompt return to applicant members of  all premiums collected in\nadvance;\n(b) For payment of all indebtedness of the corporation;\n(c) For payment of costs incurred by the state in event of any legal proceedings\nfor liquidation or dissolution of the corporation;\nall in the event the corporatio n fails to complete its organization and secure a\ncertificate of authority within one (1) year after the date of its certificate of\nincorporation; and\n(d) That it is not subject to cancellation unless thirty (30) days' advance notice in\nwriting of cancellation is given both the incorporators and the commissioner.\n(2) In lieu of such bond, the incorporators may deposit with the commissioner one\nhundred thousand dollars ($100,000) in cash or United States government bonds\nnegotiable and payable to the bearer,  with a market value of not less than one\nhundred thousand dollars ($100,000), to be held in trust upon the same conditions\nas required for the bond.\n(3) Any such bond filed or deposit or remaining portion thereof held under this section\nshall be released and discharged upon settlement and termination of all liabilities\nagainst it.\n(4) In addition to the bond the proposed insurer shall file with the commissioner copies\nof any proposed form or policy to be offered and schedule of premium rates\ntherefor, copies of all advertising and sales literature proposed to be used in such\nsolicitation, and such other information relative to the solicitation of such insurance\nor procuring of such funds as the commissioner may reasonably require, all of\nwhich must comply with the law.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29543","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"8ed028764568a855c8c3f04b1faf28d0ef718cb693646179ef313d171172fd04","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.24-100","next":"us-ky/krs-304.24-120"},"notice":"GroundRules: Original legal text. Not legal advice."}