{"data":{"id":"us-ky/krs-304.27-240","jurisdiction":"us-ky","citation":"KRS 304.27-240","heading":"Nonassessable policies.","body":"(1) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the\nminimum capital stock and surplus required to be maintained by a domestic stock\ninsurer authorized to transact like kinds of insurance, upon application of the\nattorney and as approved by the subscribers' advisory committee the commissioner\nshall issue his or her certificate authorizing the insurer to extinguish the contingent\nliability of subscribers under its policies then in force in this state, and to omit\nprovisions imposing contingent liability in all policies delivered or issued for\ndelivery in this state for so long as all such surplus remains unimpaired.\n(2) Upon impairment of such surplus, the commissioner shall forthwith revoke the\ncertificate. Such revocation shall not render subject to contingent liability any policy\nthen in force and for the remainder of the period for which the premium has\ntheretofore been paid; but after such revocation no policy shall be issued or renewed\nwithout providing for contingent assessment liability of the subscriber.\n(3) The commissioner shall not authorize a domestic reciprocal insurer so to extinguish\nthe contingent liability of any of its subscribers or in any of its policies to be issued,\nunless it qualifies to and does ext inguish such liability of all its subscribers and in\nall such policies for all kinds of insurance transacted by it. Except, that if required\nby the laws of another state in which the insurer is transacting insurance as an\nauthorized insurer, the insurer ma y issue policies providing for the contingent\nliability of such of its subscribers as may acquire such policies in such state, and\nneed not extinguish the contingent liability applicable to policies theretofore in\nforce in such state.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29632","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:52Z","sha256":"4e357d5f141eef8a66c35e7d0ba77d9f15f40923d200a68ef32dc2942443215b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.27-230","next":"us-ky/krs-304.27-250"},"notice":"GroundRules: Original legal text. Not legal advice."}