{"data":{"id":"us-ky/krs-304.33-030","jurisdiction":"us-ky","citation":"KRS 304.33-030","heading":"Definitions for subtitle.","body":"For the purposes of this subtitle:\n(1) \"Agent\" means all persons who have collected or are holding premiums or other\nassets of the insurer, including but not limited to brokers, intermediaries, managing\ngeneral agents, underwriting managers, and reinsurance managers, and any other\npersons who h ave entered into a fiduciary relationship with the insurer subject to\ndelinquency proceedings, including but not limited to persons holding licenses\nunder Subtitles 9, 32, 38, and 43 of KRS Chapter 304;\n(2) \"Ancillary state\" means any state other than a domiciliary state;\n(3) \"Court\" means the Franklin Circuit Court;\n(4) \"Creditor\" is a person having any claim, whether matured or unmatured, liquidated\nor unliquidated, secured or unsecured, absolute, fixed or contingent;\n(5) \"Delinquency proceeding\" means any proceeding commenced against an insurer for\nthe purpose of liquidating, rehabilitating, reorganizing, or conserving such insurer,\nand any summary proceeding under KRS 304.33-110 to 304.33-130, inclusive;\n(6) \"Domiciliary state\" means the state in which a n insurer is incorporated or organized\nor, in the case of an alien insurer, the state in which the insurer has, at the\ncommencement of delinquency proceedings, the largest amount of its assets held in\ntrust and on deposit for the benefit of policyholders a nd creditors in the United\nStates;\n(7) \"Fair consideration\" is given for property or an obligation:\n(a) When in exchange for such property or obligation, as a fair equivalent\ntherefor, and in good faith, property is conveyed or services are rendered or\nobligation is incurred or an antecedent debt is satisfied; or\n(b) When such property or obligation is received in good faith to secure a present\nadvance or antecedent debt in amount not disproportionately small as\ncompared to the value of the property or obligation obtained;\n(8) \"Federal home loan bank\" means an institution chartered under the Federal Home\nLoan Bank Act of 1932, 12 U.S.C. sec. 1421 et seq.;\n(9) \"Foreign country\" means territory not in any state;\n(10) \"General assets\" means all property, real, personal or otherwise, not specifically\nmortgaged, pledged, deposited or otherwise encumbered for the security or benefit\nof specified persons or limited classes of persons, and as to specifically encumbered\nproperty the term includes all such property or its proceeds in excess of the amount\nnecessary to discharge the sums secured thereby, except as otherwise expressly\nprovided in this subtitle. Assets held in trust and on deposit for the security or\nbenefit of all policyholders or all policyholders and cre ditors, in more than a single\nstate, shall be treated as general assets;\n(11) \"Guaranty association\" means the Kentucky Insurance Guaranty Association, the\nKentucky Life and Health Insurance Guaranty Association and any other similar\nentity now or hereafter created by the Legislature of this state for the payment of\nclaims of insolv ent insurers. \"Foreign guaranty association\" means any similar\nentities now in existence in, or hereafter created by the legislature of, any other\nstate;\n(12) \"Insolvency\" means that the insurer is unable to pay its debts or meet its obligations\nas they mature or that its assets do not exceed its liabilities plus the greater of:\n(a) Any capital and surplus required by law to be constantly maintained; or\n(b) Its authorized and issued capital stock. For purposes of this subsection,\n\"assets\" includes one -half (1/2) of the maximum total assessment liability of\nthe policyholders of the insurer, and \"liabilities\" includes reserves required by\nlaw. For policies issued on the basis of unlimited assessment liability, the\nmaximum total liability, for purposes of deter mining solvency only, shall be\ndeemed to be that amount that could be obtained if there were one hundred\npercent (100%) collection of an assessment at the rate of ten (10) mills;\n(13) \"Insurer\" has the meaning defined in Subtitle 1 of this chapter. For pur poses of this\nsubtitle, all other persons included under KRS 304.33 -020 shall be deemed to be\ninsurers;\n(14) \"Insurer-member\" means an insurer that is a member of a federal home loan bank;\n(15) \"Preferred claim\" means any claim with respect to which the law accords priority of\npayment from the general assets of the insurer;\n(16) \"Premium\" has the meaning set forth in Subtitle 14 of this chapter;\n(17) \"Receiver\" means receiver, liquidator, rehabilitator, or conservator, as the context\nrequires;\n(18) \"Reciprocal state\" means any state other than this state in which in substance and\neffect subsection (1) of KRS 304.33 -200, subsections (1) and (3) of KRS 304.33 -\n530, KRS 304.33 -540, and KRS 304.33 -560 to 304.33 -590, inclusive, are in force,\nand in which provisions are in force requiring that the commissioner be the receiver\nof a delinquent insurer, and in which some provision exists for the avoidance of\nfraudulent conveyances and preferential transfers;\n(19) \"Reinsurance intermediary\" means any person who acts as a broker in soliciting,\nnegotiating, or procuring the making of any reinsurance contract or binder, or acts\nas an agent in accepting any reinsurance contract or binder on behalf of an insurer;\n(20) \"Secured claim\":\n(a) Means any claim secured by mortgage,  trust deed, pledge, deposit as security,\nescrow or otherwise, but not including special deposit claims or claims against\ngeneral assets including, but not limited to, claims of setoff, counterclaim, or\nrecoupment against obligations to pay premiums to the insurer; and\n(b) Shall include claims which have become liens upon specific assets by reason\nof judicial process, except where they have been invalidated;\n(21) \"Special deposit claim\" means any claim secured by a deposit made pursuant to law\nfor the secu rity or benefit of one (1) or more limited classes of persons, but not\nincluding any claim secured by general assets; and\n(22) \"Transfer\" includes the sale and every other method, direct or indirect, of disposing\nof or of parting with property or with an i nterest therein or with the possession\nthereof or of fixing a lien upon property or upon an interest therein, absolutely or\nconditionally, voluntarily or involuntarily, by or without judicial proceedings. The\nretention of a security title to property deliv ered to a debtor shall be deemed a\ntransfer suffered by the debtor.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52643","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:54Z","sha256":"cc7b3fa93f5927d07196c1f98f1cfc5dbbb8d45e0257a75f22192e3316290b7d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.33-020","next":"us-ky/krs-304.33-040"},"notice":"GroundRules: Original legal text. Not legal advice."}