{"data":{"id":"us-ky/krs-304.32-140","jurisdiction":"us-ky","citation":"KRS 304.32-140","heading":"Guarantee fund -- Investments -- Risk-based capital requirements.","body":"(1) No corporation subject to provisions of this subtitle shall be permitted to do any\nbusiness in this state unless, in addition to the other requirements of law, it shall\nhave and maintain liquid reserves in an amount not less than five percent (5%) of\nthe corporation's subscription income collected in the preceding year not exceeding\ntwo million dollars ($2,000,000), plus two and one -half percent (2.5%) of income\nexceeding two million dollars ($2,000,000) but not exceeding ten million dollars\n($10,000,000), plus one percent (1%) of income exceeding ten million dollars\n($10,000,000); but in no event shall reserves be less than five hundred thousand\ndollars ($500,000). All corporations subject to the provisions of this subtitle shall\nplace on deposit with the c ommissioner a guarantee fund of cash or approved\nsecurities in an amount determined by this formula, but not less than five hundred\nthousand dollars ($500,000) nor more than one million five hundred thousand\ndollars ($1,500,000). Any amount of liquid reser ves required by this subsection in\nexcess of one million five hundred thousand dollars ($1,500,000) shall be\nmaintained by the corporation at all times, but shall not be required to be placed on\ndeposit, provided that the corporation shall be allowed a per iod of five (5) years\nafter July 15, 1982, to establish the liquid reserves and deposit the guarantee fund\nwith the commissioner. A corporation subject to the provisions of this subtitle shall\nat all times comply with the risk -based capital requirements as  established in\nadministrative regulations promulgated by the commissioner.\n(2) The cash or securities representing the guarantee fund required by this section shall\nbe acceptable to the commissioner and the securities shall be negotiable securities.\n(3) The investments of a corporation subject to the provisions of this subtitle shall be\nthe same kind of investments which life insurance companies are authorized to\nhave.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29774","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:54Z","sha256":"9cb7b165a440337efb4337b672493d5d23e90fbc92c9c0d0e6326b83806f009e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.32-130","next":"us-ky/krs-304.32-145"},"notice":"GroundRules: Original legal text. Not legal advice."}