{"data":{"id":"us-ky/krs-304.29-191","jurisdiction":"us-ky","citation":"KRS 304.29-191","heading":"The benefit contract.","body":"(1) Every society authorized to do business in this state shall issue to each owner of a\nbenefit contract a certificate specifying the amount of benefits provided. The\ncertificate, together with any riders or endorsements attached thereto, the laws of the\nsociety, the application for membership, the application for insurance and\ndeclaration of insurability, if any, signed by the applicant, and all amendments to\neach, shall constitute the benefit contract, as of the date of issuance, between the\nsociety and the owner, and the certificate shall so state. A copy of the application\nfor insurance and declaration of insurability, if any, shall be endorsed upon or\nattached to the certificate. All statements on the application shall be representations\nand not warranties. Any waiver of this provision shall be void.\n(2) Any changes, additions or amendments to the laws of the society duly made or\nenacted subsequent to the issuance of the certificate, shall bind the owner and the\nbeneficiaries, and shall govern and control t he benefit contract in all respects the\nsame as though the changes, additions or amendments had been made prior to and\nwere in force at the time of the application for insurance, except that no change,\naddition or amendment shall destroy or diminish benefi ts which the society\ncontracted to give the owner as of the date of issuance.\n(3) Any person upon whose life a benefit contract is issued prior to attaining the age of\nmajority shall be bound by the terms of the application and certificate and by all the\nlaws and rules of the society to the same extent as though the age of majority had\nbeen attained at the time of application.\n(4) A society shall provide in its laws that, if its reserves as to all or any class of\ncertificates become impaired, its board of d irectors or corresponding body may\nrequire that there shall be paid by the owner to the society the amount of the owner's\nequitable proportion of the deficiency as ascertained by its board, and that if the\npayment is not made either:\n(a) It shall stand as an indebtedness against the certificate and draw interest not to\nexceed the rate specified for certificate loans under the certificates; or\n(b) In lieu of or in combination with paragraph (a), the owner may accept a\nproportionate reduction in benefits under the certificate.\nThe society may specify the manner of the election and which alternative is to be\npresumed if no election is made.\n(5) Copies of any of the documents mentioned in this section, certified by the secretary\nor corresponding officer of the society, shall be received as evidence of the terms\nand conditions thereof.\n(6) No certificate shall be delivered or issued for delivery in this state unless a copy of\nthe form has been filed with and approved by the commissioner in the manner\nprovided for like policies issued by life insurers in this state. Every life, accident,\nhealth, or disability insurance certificate and every annuity certificate issued on or\nafter one (1) year from January 1, 1989 shall meet the standard contract provision\nrequirements not inconsistent with this subtitle for like policies issued by life\ninsurers in this state, except that a society may provide for a grace period for\npayment of premiums of one (1) full month in its certificates. The certificates shall\nalso contain a pr ovision stating the amount of premiums which are payable under\nthe certificate and a provision reciting or setting forth the substance of any sections\nof the society's laws or rules in force at the time of issuance of the certificate which,\nif violated, wi ll result in the termination or reduction of benefits payable under the\ncertificate. If the laws of the society provide for expulsion or suspension of a\nmember, the certificate shall also contain a provision that any member so expelled\nor suspended, except for nonpayment of a premium or within the contestable period\nfor material misrepresentation in the application for membership or insurance, shall\nhave the privilege of maintaining the certificate in force by continuing payment of\nthe required premium.\n(7) Benefit contracts issued on the lives of persons below the society's minimum age for\nadult membership may provide for transfer of control or ownership to the insured at\nan age specified in the certificate. A society may require approval of an application\nfor membership in order to effect this transfer, and may provide in all other respects\nfor the regulation, government and control of certificates and all rights, obligations,\nand liabilities incident thereto and connected therewith. Ownership rights prior to\ntransfer shall be specified in the certificate.\n(8) A society may specify the terms and conditions on which benefit contracts may be\nassigned.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29683","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:52Z","sha256":"91f68fffa237b14f0f44783f2e516453e5a57097088287aed10d3fb23e94c834","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.29-190","next":"us-ky/krs-304.29-200"},"notice":"GroundRules: Original legal text. Not legal advice."}