{"data":{"id":"us-ky/krs-304.24-230","jurisdiction":"us-ky","citation":"KRS 304.24-230","heading":"Levy of contingent liability.","body":"(1) If at any time the assets of a domestic mutual insurer are less than its liabilities and\nthe minimum amount of surplus required to be maintained by it under this code for\nauthority to transact the kinds of insurance being transacted, and the deficiency is\nnot cured from other sources, its directors may, if the same is approved by the\ncommissioner, levy an assessment only on its members who held policies providing\nfor contingent liability at any time within the twelve (12) months next preceding the\ndate the levy was authorized by the board of directors, and such members shall be\nliable to the insurer for the amount so assessed.\n(2) The levy of assessment shall be for such an amount, subject to the commissioner's\napproval, as is required to cure such deficienc y and to provide a reasonable amount\nof working funds above such minimum amount of surplus, but such working funds\nso provided shall not exceed five percent (5%) of the sum of the insurer's liabilities\nand such minimum required surplus as of the date of the levy.\n(3) As to the respective policies subject to the levy, the assessment shall be computed\nupon such reasonable basis as may be approved by the commissioner in writing in\nadvance of the levy.\n(4) No member shall have an offset against any assessment f or which he or she is\nliable, on account of any claim for unearned premium or loss payable.\n(5) As to life insurance, any part of such assessment upon a member which remains\nunpaid following notice of assessment, demand for payment, and lapse of a\nreasonable waiting period as specified in such notice, may, if approved by the\ncommissioner as being in the best interests of the insurer and its members, be\nsecured by placing a lien upon the cash surrender values and accumulated dividends\nheld by the insurer to the credit of the member.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29555","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"a6a7d14298dca921b3f1298b6b7ef31d03289718689e3f2d0a15caee908f4820","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.24-220","next":"us-ky/krs-304.24-240"},"notice":"GroundRules: Original legal text. Not legal advice."}