{"data":{"id":"us-ky/krs-304.25-050","jurisdiction":"us-ky","citation":"KRS 304.25-050","heading":"Powers of the commissioner.","body":"(1) Designate additional acting directors. If at any time during an acute emergency, the\nnumber of directors or acting directors of a domestic insurance organization who\nare capable of acting shall be less than three (3), as determined by the commissioner\nafter a reasonable investigation, the commissioner shall have the power to designate\nadditional acting directors in such number as will bring to three (3) the number of\ndirectors and acting directors who are capable of acting.\n(2) Resolve controversies. To res olve controversy as to the power of any group of\npersons purporting to act as an emergency board of directors so to act, the\ncommissioner shall, upon a determination that such action will tend to promote the\nsafe and sound and orderly conduct of the busine ss of any domestic insurance\norganization, have power to issue orders declaring that any such group shall or shall\nnot have the powers of an emergency board of directors, or confirming, modifying\nor vacating in whole or in part any action taken or purporte dly taken by any such\ngroup or by removing any acting director.\n(3) (a) Declare provisions of law operative or inoperative. At any time after an attack,\nupon his determination that such action will tend to promote certainty as to the\npowers of insurance or ganizations or individuals pursuant to this subtitle or\nthat such action is desirable to enable insurance organizations to take\npreparatory precautions prior to the occurrence of an acute emergency, the\ncommissioner shall have power to declare that any pro vision of this subtitle\nwhich he may specify shall be operative with respect to any domestic\ninsurance organization or to the Kentucky business of any other insurance\norganization which he may designate. Upon such declaration such\norganization and its dire ctors, officers, acting directors, and acting officers\nshall have all powers conferred by this subtitle. The failure of the\ncommissioner so to declare shall not be deemed to limit the powers of any\norganization or its directors, officers, acting directors, or acting officers where\nan acute emergency exists in fact.\n(b) At any time after the commencement of an acute emergency or after the\ncommissioner shall have declared any provision of this subtitle operative\nunder this subsection upon his determination th at an insurance organization is\nable, in whole or in part, to carry on its business in compliance with its charter\nand the laws, other than this subtitle, the commissioner shall have power to\ndeclare that any provision of this subtitle which he may specify  shall be\ninoperative with respect to any domestic insurance organization or to the\nKentucky business of any other insurance organization which he may\ndesignate. Upon such declaration, such organization shall be governed by its\ncharter and the provisions of law other than this subtitle, except insofar as they\nremain inoperative.\n(4) Possession of business and property. Upon the determination that, as a result of an\nacute emergency, the business and affairs of an insurance organization cannot\notherwise be co nducted in a safe and sound manner, the commissioner may\nforthwith take possession of the business and property of the insurance organization\nwithin this state or, if a domestic insurance organization, its business and property\nwherever situated. This subt itle shall be applicable in any case in which the\ncommissioner takes possession of an insurance organization under this subsection\nas though the insurance organization were an insurer of which the commissioner\nhad taken possession under this subtitle, exce pt that no such provision shall be\napplicable which the commissioner shall have declared inapplicable under this\nsubsection. The commissioner shall have power to declare inapplicable any such\nprovision upon his determination that the same is inappropriate or unnecessary to\nprotect the interest of the public or the stockholders or creditors of the insurance\norganization, in view of the acute emergency and the nature of the organization.\n(5) When powers exercised. The powers given the commissioner by subsections (2) and\n(4) of this section shall be exercised by him only in the event that there is no court\nof competent jurisdiction available to which an application can be made for an order\npermitting him to exercise such powers with respect to a particular insu rance\norganization. The powers conferred by subsection (4) of this section shall not be\nexercised in a case of an insurance organization which is not insolvent within the\nmeaning of this subtitle, unless the commissioner finds that such insurance\norganization lacks personnel able to manage its business in the interest of the\npublic, stockholders, and policyholders.\n(6) Regulations. The commissioner shall have power to issue general and specific\nregulations, directives, and orders consistent with and in furt herance of the purpose\nof this subtitle.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29597","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"194e35f42d858901afb91a30dcfac8527cb72a8ca70fc9523d0477d6bf258aa4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.25-040","next":"us-ky/krs-304.25-060"},"notice":"GroundRules: Original legal text. Not legal advice."}