{"data":{"id":"us-ky/krs-304.29-101","jurisdiction":"us-ky","citation":"KRS 304.29-101","heading":"Organization.","body":"A domestic society organized on or after January 1, 1989, shall be formed as follows:\n(1) Seven (7) or more citizens of the United States, a majority of whom are citizens of\nthis state, who desire to form a fraternal benefit society, may make, sign and\nacknowledge before some officer competent to take acknowledgment of deeds,\narticles of incorporation, in which shall be stated:\n(a) The proposed corporate name of the society, which shall not so closely\nresemble the name of any society or insurance company as to be misleading or\nconfusing;\n(b) The purposes for which it is being formed and the mode in which its corporate\npowers are to be exercised. The purposes shall not include more liberal\npowers than are granted by this subtitle; and\n(c) The names and reside nces of the incorporators and the names, residences and\nofficial titles of all the officers, trustees, directors, or other persons who are to\nhave and exercise the general control of the management of the affairs and\nfunds of the society for the first year  or until the ensuing election at which all\nsuch officers shall be elected by the supreme governing body, which election\nshall be held not later than one (1) year from the date of issuance of the\npermanent certificate of authority;\n(2) The articles of incorporation, duly certified copies of the society's bylaws and rules,\ncopies of all proposed forms of certificates, applications therefor, and circulars to be\nissued by the society and a bond conditioned upon the return to applicants of the\nadvanced payments if the organization is not completed within one (1) year shall be\nfiled with the commissioner, who may require further information. The bond with\nsureties approved by the commissioner shall be in an amount, not less than three\nhundred thousand dollars ($3 00,000) nor more than one million five hundred\nthousand dollars ($1,500,000), as required by the commissioner. All documents\nfiled shall be in the English language. If the purposes of the society conform to the\nrequirements of this subtitle and all provisi ons of the law have been complied with,\nthe commissioner shall so certify, retain and file the articles of incorporation and\nfurnish the incorporators a preliminary certificate of authority authorizing the\nsociety to solicit members;\n(3) No preliminary cer tificate of authority granted under the provisions of this section\nshall be valid after one (1) year from its date or after such further period, not\nexceeding one (1) year, as may be authorized by the commissioner upon cause\nshown, unless the five hundred (500) applicants hereinafter required have been\nsecured and the organization has been completed as herein provided. The articles of\nincorporation and all other proceedings thereunder shall become null and void in\none (1) year from the date of the prelimina ry certificate of authority, or at the\nexpiration of the extended period, unless the society shall have completed its\norganization and received a certificate of authority to do business;\n(4) Upon receipt of a preliminary certificate of authority from the c ommissioner, the\nsociety may solicit members for the purpose of completing its organization, shall\ncollect from each applicant the amount of not less than one (1) regular monthly\npremium in accordance with its table of rates, and shall issue to each applic ant a\nreceipt for the amount so collected. No society shall incur any liability other than for\nthe return of advance premium, nor issue any certificate, nor pay, allow, or offer or\npromise to pay or allow, any benefit to any person until:\n(a) Actual bona f ide applications for benefits have been secured on not less than\nfive hundred (500) applicants, and any necessary evidence of insurability has\nbeen furnished to and approved by the society;\n(b) At least ten (10) subordinate lodges have been established int o which the five\nhundred (500) applicants have been admitted;\n(c) There has been submitted to the commissioner, under oath of the president or\nsecretary, or corresponding officer of the society, a list of the applicants,\ngiving their names, addresses, date  each was admitted, name and number of\nthe subordinate lodge of which each applicant is a member, amount of\nbenefits to be granted and premiums therefor; and\n(d) It shall have been shown to the commissioner, by sworn statement of the\ntreasurer, or correspo nding officer of the society, that at least five hundred\n(500) applicants have each paid in cash at least one (1) regular monthly\npremium, which premiums in the aggregate shall amount to at least one\nhundred fifty thousand dollars ($150,000). The advance p remiums shall be\nheld in trust during the period of organization; and if the society has not\nqualified for a certificate of authority within one (1) year, the premiums shall\nbe returned to the applicants;\n(5) The commissioner may make examination and requi re further information as he or\nshe deems advisable. Upon presentation of satisfactory evidence that the society has\ncomplied with all the provisions of law, the commissioner shall issue to the society\na certificate of authority to that effect and that the  society is authorized to transact\nbusiness pursuant to the provisions of KRS Chapter 304. The certificate of authority\nshall be prima facie evidence of the existence of the society at the date of the\ncertificate. The commissioner shall cause a record of t he certificate of authority to\nbe made. A certified copy of the record may be given in evidence with like effect as\nthe original certificate of authority;\n(6) Any incorporated society authorized to transact business in this state at the time this\nsubtitle becomes effective shall not be required to reincorporate; and\n(7) No unincorporated or voluntary association shall be permitted to transact business\nin this state as a fraternal benefit society.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29665","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:52Z","sha256":"aa8584f37332e00dbbfffbd9434850320eb35f307f57c7555fe982c0da9ceec1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.29-100","next":"us-ky/krs-304.29-110"},"notice":"GroundRules: Original legal text. Not legal advice."}