{"data":{"id":"us-ky/krs-304.3-120","jurisdiction":"us-ky","citation":"KRS 304.3-120","heading":"Capital funds required -- Amount of surplus required.","body":"(1) Except as provided in subsection (2) of this section, to qualify for authority to\ntransact insurance (as defined in Subtitle 5), an insurer shall possess and thereafter\nmaintain unimpaired paid -in capital stock (if a stock insurer) or unimpaired basic\nsurplus (if a foreign mutual, reciprocal, or Lloyd's insurer), and when first so\nauthorized shall possess initial free surplus, all in amounts not less than as\ndetermined from the following table:\nForeign Mutual,\nReciprocal, and\nStock Insurers     Lloyd's Insurers\nMinimum      Minimum\nRequired  Initial   Required   Initial\nCapital  Free    Basic    Free\nStock  Surplus   Surplus   Surplus\n$1,000,000  $2,000,000   $1,000,000   $2,000,000\n(2) An insurer holding a valid certificate of autho rity to transact insurance in this state\nimmediately prior to July 15, 1982, may, if otherwise qualified therefor, continue to\nbe so authorized while possessing paid-in capital stock (if a stock insurer) or surplus\n(if a mutual, reciprocal, or Lloyd's insu rer) as required for such authority\nimmediately prior to July 15, 1982. The commissioner shall not authorize such an\ninsurer to transact any other kinds of insurance unless it then complies with the\nrequirements as to capital and surplus. Notwithstanding t he other provisions hereof,\nthe exception provided in this subsection (2) shall cease to apply to any such insurer\nfrom and after the date upon which it has accumulated surplus in an amount equal\nto two hundred percent (200%) of the initial free surplus (i f a stock or foreign\nmutual, reciprocal, or Lloyd's insurer) or the surplus (if a domestic mutual insurer)\nrequired under other provisions of this code to qualify for authority to transact the\nkind or kinds of insurance being transacted by it.\n(3) Each insurer shall at all times maintain bona fide additional surplus in the amount\nof two hundred fifty thousand dollars ($250,000). Insurers holding a valid certificate\nof authority to transact insurance in this state immediately prior to July 13, 1984,\nmay, if otherwise qualified therefor, continue to be so authorized while possessing\nadditional surplus as required for such authority immediately prior to July 13, 1984.\nThe commissioner shall not authorize such an insurer to transact any other kinds of\ninsurance unless it complies with this subsection. The exception provided in this\nsubsection shall cease to apply to any insurer from and after the date upon which it\nhas accumulated additional surplus equal to or in excess of the additional surplus\nrequired by this  subsection. This subsection shall not apply to an association\nqualifying pursuant to KRS 304.3-070(3).\n(4) As to surplus required for authority to transact one (1) or more kinds of insurance\nand thereafter to be maintained, domestic mutual legal reserve i nsurers hereafter\nformed shall be governed by Subtitle 24 of this chapter.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43230","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:37Z","sha256":"63ff754e18c8b90caffc4995dae6f499439034019a088f15cf78c9497ba97c94","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.3-110","next":"us-ky/krs-304.3-125"},"notice":"GroundRules: Original legal text. Not legal advice."}