{"data":{"id":"us-ky/krs-304.3-070","jurisdiction":"us-ky","citation":"KRS 304.3-070","heading":"Eligibility for certificate of authority.","body":"(1) To qualify for and hold authority to transact insurance in this state, an insurer must\nbe otherwise in compliance with this code and with its charter powers, and must be\nan incorporated stock or mutual insurer, or a combined stock and mutual life\ninsurer, or a reciprocal insurer, or Lloyd's plan insurer, of the same general type as\nmay be formed as a domestic insurer under this code, or an association, including\nincorporated and individual unincorporated underwriters, meeting the requirements\nof subsection (3) of this section, except that:\n(a) No foreign insurer shall be authorized to transact insurance in this state which\ndoes not maintain reserves as required by Subtitle 6 as applicable to the kind\nor kinds of insurance transacted by such insurer, wherever  transacted in the\nUnited States; or which transacts business anywhere in the United States on\nthe assessment plan, or stipulated premium plan, or any similar plan;\n(b) No insurer shall be authorized to transact a kind of insurance in this state\nunless duly authorized or qualified to transact such insurance in the state or\ncountry of its domicile;\n(c) No insurer shall be authorized to transact in this state any kind of insurance\nwhich is not within the definition as set forth in Subtitle 5;\n(d) No such auth ority shall be granted or continued as to any insurer while in\narrears to the state for fees, licenses, taxes, assessments, fines or penalties\naccrued on business previously transacted in this state;\n(e) A combined stock and mutual life insurer must mainta in separate accounting\nfor income, expenses, assets, liabilities and surplus funds allocated between\nthe \"mutual\" branch and the \"stock\" branch, in a manner as provided by a\nregulation to be promulgated by the commissioner. The \"mutual\" branch shall\nnot invest any moneys in equity securities of the \"stock\" branch, nor shall it\nloan any moneys to the \"stock\" branch. The \"stock\" branch shall not loan any\nmoneys to the \"mutual\" branch; and\n(f) A life insurer in forming the \"stock\" branch or the \"mutual\" branch  of a\ncombined stock and mutual life insurer, must possess the capital funds\nrequired pursuant to KRS 304.3 -120 for the stock branch, and must possess\nthe surplus funds required under KRS 304.24 -100 for the mutual branch. The\ncommissioner shall not grant a  certificate of authority to any life insurer to\nconduct its business as a combination stock and mutual life insurer, unless the\naforesaid capitalization requirements are fulfilled.\n(2) In determining the solvency of or impairment to any foreign or alien i nsurer which\nis requesting the issuance or continuance of any certificate of authority to do\nbusiness in this state, the commissioner may admit as assets only those items which\nwould qualify as admitted assets for a domestic insurer similarly situated.\n(3) To qualify for and hold authority to transact insurance in this state, an association,\nincluding incorporated and individual unincorporated underwriters, in addition to\nmeeting the requirements of subsection (1) of this section, shall have:\n(a) Collective minimum capital and surplus equivalents, net of liabilities, on a\nseveral, not joint, basis of at least two hundred fifty million dollars\n($250,000,000) and a central fund containing a balance of at least two hundred\nfifty million dollars ($250,000,000);\n(b) The incorporated members of the association:\n1. Shall not be engaged in any business, other than underwriting; and\n2. Shall be subject to the same level of regulation and solvency control by\nthe association's domiciliary regulator as are the unincorporated\nmembers;\n(c) An association, including incorporated and individual unincorporated\nunderwriters that meet the requirem ents of this subsection, shall not be\ndeemed a Lloyd's plan insurer as defined in KRS 304.3 -040, and shall not be\nsubject to the requirements of Subtitle 28 of this chapter; and\n(d) The underwriting members of an association, including incorporated and\nindividual unincorporated underwriters, that qualify for and hold authority to\ntransact insurance in this state pursuant to this section, may also qualify as\neligible surplus lines insurers pursuant to KRS 304.10-070.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43229","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:37Z","sha256":"124aa449eb597c9e9b2b6d8cc947e8da63b380b398b35bc052dec782d257868c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.3-060","next":"us-ky/krs-304.3-080"},"notice":"GroundRules: Original legal text. Not legal advice."}