KRS § 299.310 — KY Code / Title XXV / Chapter 299 / Section 299.310
299.310 Organization of assessment or cooperative company to write certain insurance other than life -- Membership -- Preliminary bond
Status: in_force

299.310 Organization of assessment or cooperative company to write certain

insurance other than life -- Membership -- Preliminary bond.

(1) Twenty-five (25) or more persons residing in any one or more adjoining

municipalities, or in any county, or in not more than ten (10) adjoining counties,

who collectively own property of the value of fifty thousand dollars ($50,000) or

more, may organize a company for the purpose of cooperative or assessment

insurance against:

(a) Loss of or damage to real or personal property of every kind and interest

therein, from any or all hazards or causes, and against loss consequential upon

such loss or damage; and

(b) Legal liability for the death, injury, or disability of any human being, or for

damage to property; and medical, hospital, surgical, and funeral expenses of

persons injured, irrespective of legal liability of the insured, when issued as an

incidental coverage with or supplemental to liability insurance.

Such persons shall make and acknowledge a certificate setting forth their intention

to form such a company, the counties or municipalities in which it intends to do

business, its corporate name, and the place where its principal office is to be

located. Every person insured in such a company who signs an application for

insurance as required by the certificate of incorporation or by the bylaws of the

company shall thereby become a member. Provided, however, that no such

company shall insure against any of the hazards set forth in paragraph (b) of this

subsection unless it has a net surplus of two million dollars ($2,000,000) or more or

is fully reinsured as to all such hazards by a contract or contracts filed with and

approved by the commissioner.

(2) No money shall be collected by any person on behalf of the company until two (2)

of the members or organizers have given joint bond to the commissioner in the sum

of ten thousand dollars ($10,000), conditioned that all money so collected will be

used as directed by law, and that the affairs of the company will be conducted

according to law. The bond shall be held by the commissioner for the benefit of the

members of the company until the company has become legally incorporated and its

affairs have been examined by an expert accountant, appointed by the

commissioner, and found to be in due and regular form, and immediately thereafter

the bond shall be canceled.

(3) No company shall be formed under KRS 299.310 to 299.470 for the purpose of

transacting any business of insurance other than as prescribed in those sections, and

no company shall insure against any loss other than the ones permitted by those

sections. Any company operating under the provisions of KRS 299.310 to 299.470

as of June 1, 1960, shall be authorized to write all types of insurance allowed under

subsection (1) of this section without amendment of its charter or articles of

incorporation.

(4) Insurers organized under the provisions of this section are subject to the provisions

of subtitle 36 of KRS Chapter 304 to the extent applicable and not in conflict with

the expressed provisions of this chapter.