{"data":{"id":"us-ky/krs-304.24-420","jurisdiction":"us-ky","citation":"KRS 304.24-420","heading":"Bulk reinsurance.","body":"(1) A domestic insurer may reinsure all or substantially all of its business in force, or all\nor substantially all of a major class thereof, with another insurer, stock or mutual, by\nan agreement of bulk reinsurance after compliance with this section. No such\nagreement shall become effective unless filed with the commissioner and approved\nby him or her in writing.\n(2) The commissioner shall approve such agreements within a reasonable time after\nfiling if he or she finds:\n(a) That the plan and agreement are fair  and equitable to each insurer and to the\npolicyholders involved;\n(b) That the reinsurance, if effectuated, would not substantially reduce the\nprotection or service to the policyholders of any domestic insurer involved;\n(c) That the agreement embodies adeq uate provisions by which the reinsuring\ninsurer becomes liable to the original insureds for any loss or damage\noccurring under the policies reinsured in accordance with the original terms of\nsuch policies, and that the reinsuring insurer shall duly furnish  each such\ninsured with a certificate evidencing such assumption of liability;\n(d) That the assuming reinsurer is authorized to transact such insurance in this\nstate, or is qualified as for such authorization and will appoint the\ncommissioner and his or he r successors as its irrevocable attorney for service\nof process, so long as any policy so reinsured or claim thereunder remains in\nforce or outstanding;\n(e) That such reinsurance would not materially tend to lessen competition in the\ninsurance business in this state or elsewhere as to the kinds of insurance\ninvolved, and would not materially tend to create a monopoly as to such\nbusiness; and\n(f) That the proposed bulk reinsurance is free of other reasonable objections.\n(3) If the commissioner does not so ap prove he or she shall forthwith notify each\ninsurer involved in writing, specifying his or her reasons therefor.\n(4) If for reinsurance of all or substantially all of the business in force of a mutual\ninsurer at a time when the insurer's surplus is not imp aired, the plan and agreement\nfor such reinsurance must be approved by vote of not less than two -thirds (2/3) of\nthe mutual insurer's members voting thereon at a meeting of members called for the\npurpose, pursuant to such reasonable notice and procedure as  is provided for in the\nagreement. If a life insurer, right to vote may be limited to members whose policies\nare other than term or group policies, and have been in effect for more than one (1)\nyear.\n(5) No director, officer, agent or employee of any insurer party to such reinsurance, nor\nany other person shall receive any compensation for arranging such bulk\nreinsurance other than as provided in the agreement submitted to and approved by\nthe commissioner.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29575","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"c70c4e23f9e488da62a1d327076b6c25ebc188fc50a9dc49934b40a1fcbe9014","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.24-415","next":"us-ky/krs-304.24-430"},"notice":"GroundRules: Original legal text. Not legal advice."}