{"data":{"id":"us-ky/krs-304.6-010","jurisdiction":"us-ky","citation":"KRS 304.6-010","heading":"\"Assets\" defined.","body":"(1) In any determination of the financial condition of an insurer, there shall be allowed\nas assets only such assets as are owned by the insurer and which consist of:\n(a) Cash in the possession of the insurer, or in transit under its control, and\nincluding the true balance of any deposit in a solvent bank or trust company;\n(b) Investments, securities, properties and loans acquired or held in accordance\nwith this code and in connection therewith the following items:\n1. Interest due or accrued on any bond or evid ence of indebtedness which\nis not in default and which is not valued on a basis including accrued\ninterest;\n2. Declared and unpaid dividends on stocks and shares, unless such amount\nhas otherwise been allowed as an asset;\n3. Interest due or accrued upon a collateral loan in an amount not to exceed\none (1) year's interest thereon;\n4. Interest due or accrued on deposits in solvent banks and trust companies,\nand interest due or accrued on other assets, if such interest is in the\njudgment of the commissioner a collectible asset;\n5. Interest due or accrued on a mortgage loan, in an amount not exceeding\nin any event the amount, if any, of the excess of the value of the property\nless delinquent taxes thereon over the unpaid principal. Collectible\ninterest one hundr ed eighty (180) days past due on a mortgage loan in\ndefault is a nonadmitted asset; and\n6. Rent due or accrued on real property if such rent is not in arrears for\nmore than three (3) months, and rent more than three (3) months in\narrears if the payment of such rent be adequately secured by property\nheld in the name of the tenant and conveyed to the insurer as collateral;\n(c) Premium notes, policy loans, and other policy assets and liens on policies of\nlife insurance and annuity contracts and accrued interest thereon, in an amount\nnot exceeding the policy reserves or cash surrender value;\n(d) The net amount of uncollected and deferred premiums and annuity\nconsiderations in the case of a life insurer, corresponding to the basis on\nwhich reserves are held;\n(e) Premiums in the course of collection, other than for life insurance, not more\nthan three (3) months past due, less commissions payable thereon. To the\nextent that there is no related unearned premium, any uncollected premium\nbalances which are over ninety (90) days due shall be nonadmitted. The\nuncollected agent's receivable on a policy basis which is over ninety (90) days\ndue shall be nonadmitted regardless of any unearned premium;\n(f) Installment premiums other than life insurance premiums to the extent of the\npolicy reserve carried on the policy to which premiums apply. If an\ninstallment premium is past due, the amount over ninety (90) days due plus all\nfuture installments that have be en recorded on that policy shall be\nnonadmitted;\n(g) Bills receivable for premiums other than life insurance premiums, on policies\npermitted to be issued on such basis, to the extent of the policy reserve carried\nthereon. Bills receivable shall be nonadmit ted if either of the following\nconditions are present:\n1. If an installment premium is over ninety (90) days due, the entire bill's\nreceivable balance from that policy shall be nonadmitted; or\n2. If the bill's receivable balance due exceeds the policy's un earned\npremium, the amount in excess of the unearned premium is\nnonadmitted;\n(h) The full amount of reinsurance recoverable on paid losses and loss adjustment\nexpense by a ceding insurer from a solvent reinsurer and which reinsurance is\nauthorized under KRS 304.5-140;\n(i) Funds held or deposited with reinsured companies, whether premiums\nwithheld as security for unearned premium and outstanding loss reserves or\nadvances for loss payments, are admitted assets provided they do not exceed\nthe liabilities they secure and provided the reinsured is solvent. Any funds in\nexcess of the liabilities, and any funds held by an insolvent reinsured, shall be\nnonadmitted;\n(j) Deposits or equities recoverable from underwriting associations, syndicates\nand reinsurance funds,  or from any suspended banking institution, to the\nextent deemed by the commissioner available for the payment of losses and\nclaims and at values to be determined by the commissioner;\n(k) As to a title insurer, its title plant and equipment reasonably nece ssary for\nconduct of its abstract or title insurance business, at not to exceed the cost\nthereof;\n(l) Electronic data processing equipment and operating software are admitted\nassets to the extent they conform to the requirements of SSAP No. 4.\nElectronic data processing equipment and software shall be depreciated for a\nperiod not to exceed three (3) years using methods detailed in SSAP No. 19.\nThe aggregate value of admitted electronic data processing equipment and\noperating system software (net of accumula ted depreciation) shall be limited\nto three percent (3%) of the reporting entity's capital and surplus on the\nstatutory balance sheet for its most recently filed statement with its domicilary\nstate commissioner, adjusted to exclude electronic data processi ng equipment\nand operating system software, net deferred tax assets, and net positive\ngoodwill;\n(m) A collateral loan or unconditional obligation for the payment of money\nsecured by the pledge of an investment to the extent it conforms to the\nrequirements of SSAP No. 4. The outstanding principal balance on the loan\nand any related accrued interest shall be recorded as an admitted asset subject\nto the following limitations:\n1. A collateral loan determined to be impaired shall be an admitted asset\nequal to th e fair market value of the collateral less estimated costs to\nobtain and sell the collateral. The difference between the net fair value\nof the collateral and the amount of the collateral loan shall be written off\nin accordance with SSAP No. 5.\n2. A collate ral loan secured by an asset that does not qualify as an\ninvestment shall be nonadmitted.\n3. A collateral loan that exceeds the fair market value of the collateral shall\nbe an admitted asset equal to the fair market value of the collateral. The\nexcess shall be classified as a nonadmitted asset;\n(n) Deferred tax assets as defined in SSAP No. 10;\n(o) Receivable for securities as defined in SSAP No. 21;\n(p) Guaranteed investment contracts as defined in SSAP No. 21;\n(q) Cash value of life insurance where the re porting entity is owner and\nbeneficiary as defined in SSAP No. 21;\n(r) Other amounts receivable under reinsurance contracts as defined in SSAP No.\n21;\n(s) State guarantee association promissory notes;\n(t) All assets as may be allowed pursuant to the accoun ting practices and\nprocedures manual; and\n(u) Other assets, not inconsistent with the provisions of this section, deemed by\nthe commissioner to be available for the payment of losses and claims, at\nvalues to be determined by the commissioner.\n(2) Admitted assets may be allowed as deductions from corresponding liabilities, and\nliabilities may be charged as deductions from assets, and deductions from assets\nmay be charged as liabilities, in accordance with the form of annual statement\napplicable to such insurer as prescribed by the commissioner, or otherwise in his or\nher discretion. The commissioner may make official regulations prescribing the\napplication of the provisions of this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16771","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:38Z","sha256":"308e97d12fd3949e2ce8048576c2cfa8579de1284f574d3e00c52cb76a2923bd","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.6-005","next":"us-ky/krs-304.6-020"},"notice":"GroundRules: Original legal text. Not legal advice."}