{"data":{"id":"us-ky/krs-304.49-190","jurisdiction":"us-ky","citation":"KRS 304.49-190","heading":"Formation of sponsored captive insurer -- Conditions.","body":"(1) One (1) or more sponsors may form a sponsored captive insurer under KRS 304.49-\n010 to 304.49-230.\n(2) A sponsored captive insurer formed or issued a certificate of authority under the\nprovisions of KRS 304.49-010 to 304.49-230 may establish and maintain one (1) or\nmore protected cells to insure risks of one (1) or more participants, subject to the\nfollowing conditions:\n(a) The shareholders of a sponsored captive insurer shall be limited to its\nparticipants and sponsors;\n(b) Each protected cell shall be accounted for separately on the books and records\nof the sponsored captive insurer to reflect the financial condition and results of\noperations of the protected cell, net income or loss, dividends, or other\ndistributions to participants, and any other factors provided in the participant\ncontract or required by the commissioner;\n(c) The assets of a protected cell shall not be chargeable with liabilities arising\nout of any other insurance business the sponsored captive insurer may\nconduct;\n(d) No sale, exchange, or other transfer of assets may be made by the sponsored\ncaptive insurer between or among any of its protected cells without the\nconsent of the protected cells;\n(e) No sale, exchange, transfer of assets, dividend, or distribution may be made\nfrom a protect ed cell to a sponsor or participant without the commissioner's\napproval and, in no event, shall such approval be given if the sale, exchange,\ntransfer, dividend, or distribution would result in insolvency or impairment\nwith respect to a protected cell;\n(f) Each sponsored captive insurer shall annually file with the commissioner\nthose financial reports required by the commissioner, which shall include,\nwithout limitation, accounting statements detailing the financial experience of\neach protected cell;\n(g) Each sponsored captive insurer shall notify the commissioner, in writing,\nwithin ten (10) business days, of any protected cell that is insolvent or\notherwise unable to meet its claim or expense obligations; and\n(h) No participant contract shall take effect w ithout the commissioner's prior\nwritten approval, and the addition of each new protected cell and withdrawal\nof any participant of any existing protected cell shall constitute a change in the\nbusiness plan requiring the commissioner's prior written approval.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30236","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:00Z","sha256":"f9a04fada369309c45337caf6c3596080924d9c1820257d0486e339c2c03188b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.49-180","next":"us-ky/krs-304.49-200"},"notice":"GroundRules: Original legal text. Not legal advice."}