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Form a Business

Fraternal Benefit Societies

KRS tit. XXV, ch. 304, subtit. 29
in effect

KRS 304.29-010 Repealed, effective January 1, 1989

304.29-010. Repealed, effective January 1, 1989 Catchline at repeal: Fraternal benefit societies, defined. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 1, effective June 18, 1970.

KRS 304.29-011 Fraternal benefit societies, defined

304.29-011. Fraternal benefit societies, defined Any incorporated society, order, or supreme lodge, without capital stock, including one (1) exempted under the provisions of subsection (1)(b) of KRS 304.29-371, whether incorporated or not, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and which provides benefits in accordance with this subtitle, shall be a fraternal benefit society. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 1, effective January 1, 1989.

KRS 304.29-015 Repealed, effective January 1, 1989

304.29-015. Repealed, effective January 1, 1989 Catchline at repeal: Application of other subtitles. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1982 Ky. Acts ch. 320, sec. 31. effective January 15, 1982.

KRS 304.29-020 Repealed, effective January 1, 1989

304.29-020. Repealed, effective January 1, 1989 Catchline at repeal: Lodge system, defined. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 2, effective June 18, 1970.

KRS 304.29-021 Lodge system, defined

304.29-021. Lodge system, defined (1) A society shall be deemed to be operating on the lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated or admitted in accordance with its laws, rules and ritual. Subordinate lodges shall be required by the laws of the society to hold regular meetings at least once in each month in furtherance of the purposes of the society. (2) A society may, at its option, organize and operate lodges for children under the minimum age for adult membership. Membership and initiation in local lodges shall not be required of the children, nor shall they have a voice or vote in the management of the society. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 2, effective January 1, 1989.

KRS 304.29-030 Repealed, effective January 1, 1989

304.29-030. Repealed, effective January 1, 1989 Catchline at repeal: "Premiums,""Society," defined. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 3, effective June 18, 1970.

KRS 304.29-031 Representative form of government, defined

304.29-031. Representative form of government, defined A society shall have a representative form of government if: (1) It has a supreme governing body constituted in one (1) of the following ways: (a) An assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws. A society may provide for election of delegates by mail. The elected delegates shall constitute a majority in number and shall not have less than two-thirds (2/3) of the votes and not less than the number of votes required to amend the society's laws. The assembly shall be elected and shall meet at least once every four (4) years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws; or (b) A board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. A society may provide for election of the board by mail. Each term of a board member may not exceed four (4) years. Vacancies on the board between elections may be filled in the manner prescribed by the society's laws. Those persons elected to the board shall constitute a majority in number and not less than the number of votes required to amend the society's laws. A person filling the unexpired term of an elected board member shall be considered to be an elected member. The board shall meet at least quarterly to conduct the business of the society; (2) The officers of the society are elected either by the supreme governing body or by the board of directors; (3) Only benefit members are eligible for election to the supreme governing body and the board of directors; and (4) Each voting member shall have one (1) vote which shall not be cast by proxy. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 3, effective January 1, 1989.

KRS 304.29-040 Repealed, effective January 1, 1989

304.29-040. Repealed, effective January 1, 1989 Catchline at repeal: Representative form of government, defined. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 4, effective June 18, 1970.

KRS 304.29-041 Definitions

304.29-041. Definitions As used in this subtitle: (1) "Benefit contract" shall mean the agreement for provision of benefits authorized by KRS 304.29-161, as that agreement is described in subsection (1) of KRS 304.29- 191. (2) "Benefit member" shall mean an adult member who is designated by the laws or rules of the society to be a benefit member under a benefit contract. (3) "Certificate" shall mean the document issued as written evidence of the benefit contract. (4) "Premiums" shall mean premiums, rates, dues or other required contributions, however designated, which are payable under the certificate. (5) "Laws" shall mean the society's articles of incorporation, constitution and bylaws, however designated. (6) "Rules" shall mean all rules, regulations or resolutions adopted by the supreme governing body or board of directors which are intended to have general application to the members of the society. (7) "Society" shall mean fraternal benefit society, unless otherwise indicated. (8) "Lodge" shall mean subordinate member units of the society, known as camps, courts, councils, branches or by any other designation. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 4, effective January 1, 1989.

KRS 304.29-050 Repealed, effective January 1, 1989

304.29-050. Repealed, effective January 1, 1989 Catchline at repeal: Organization - Articles of incorporation - Contents - Signatures. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 5, effective June 18, 1970.

KRS 304.29-051 Purposes and powers

304.29-051. Purposes and powers (1) A society shall operate for the benefit of members and their beneficiaries by: (a) Providing benefits as specified in KRS 304.29-161; and (b) Operating for one (1) or more social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic or religious purposes for the benefit of its members, which may also be extended to others. The purposes may be carried out directly by the society, or indirectly through subsidiary corporations or affiliated organizations. (2) Every society shall have the power to adopt laws and rules for the government of the society, the admission of its members, and the management of its affairs. It shall have the power to change, alter, add to or amend the laws and rules and shall have other powers necessary and incidental to carrying into effect the objects and purposes of the society. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 5, effective January 1, 1989.

KRS 304.29-060 Repealed, effective January 1, 1989

304.29-060. Repealed, effective January 1, 1989 Catchline at repeal: Organization -- Preliminary certificate issued by commissioner -- Bond. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 6, effective June 18, 1970.

KRS 304.29-061 Qualifications for membership

304.29-061. Qualifications for membership (1) A society shall specify in its laws or rules: (a) Eligibility standards for each and every class of membership. If benefits are provided on the lives of children, the minimum age for adult membership shall be set at not less than age fifteen (15) and not greater than age twenty- one (21); (b) The process for admission to membership for each membership class; and (c) The rights and privileges of each membership class. Only benefit members shall have the right to vote on the management of the insurance affairs of the society. (2) A society may also admit social members who shall have no voice or vote in the management of the insurance affairs of the society. (3) Membership rights in the society shall be personal to the member and shall not be assignable. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 6, effective January 1, 1989.

KRS 304.29-070 Repealed, effective January 1, 1989

304.29-070. Repealed, effective January 1, 1989 Catchline at repeal: Solicitation of members -- Collection of advance premiums -- Reports to commissioner. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 7, effective June 18, 1970.

KRS 304.29-071 Location of office -- Meetings -- Communications to members -- Grievance procedures

304.29-071. Location of office -- Meetings -- Communications to members -- Grievance procedures (1) The principal office of any domestic society shall be located in this state. The meetings of its supreme governing body may be held in any state, district, province or territory wherein the society has at least one (1) subordinate lodge, or in such other location as determined by the supreme governing body; and all business transacted at the meetings shall be as valid in all respects as if the meetings were held in this state. The minutes of the proceedings of the supreme governing body and of the board of directors shall be in the English language. (2) (a) A society may provide in its laws for an official publication in which any notice, report, or statement required by law to be given to members, including notice of election, may be published. The required reports, notices and statements shall be printed conspicuously in the publication. If the records of a society show that two (2) or more members have the same mailing address, an official publication mailed to one (1) member shall be deemed to be mailed to all members at the same address unless a member requests a separate copy. (b) Not later than June 1 of each year, a synopsis of the society's annual statement providing an explanation of the facts concerning the condition of the society thereby disclosed shall be printed and mailed to each benefit member of the society; or, in lieu thereof, the synopsis may be published in the society's official publication. (3) A society may provide in its laws or rules for grievance or complaint procedures for members. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 7, effective January 1, 1989.

KRS 304.29-080 Repealed, effective January 1, 1989

304.29-080. Repealed, effective January 1, 1989 Catchline at repeal: Certificate of compliance -- Authorization to transact business. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 8, effective June 18, 1970.

KRS 304.29-081 Personal liability

304.29-081. Personal liability (1) The officers and members of the supreme governing body or any subordinate body of a society shall not be personally liable for any benefits provided by a society. (2) Any person may be indemnified and reimbursed by any society for expenses reasonably incurred by, and liabilities imposed upon, the person in connection with or arising out of any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, or threat thereof, in which the person may be involved by reason of the fact that he or she is or was a director, officer, employee or agent of the society or of any firm, corporation, or organization which he or she served in any capacity at the request of the society. A person shall not be indemnified or reimbursed in relation to any matter in such action, suit, or proceeding as to which he or she shall finally be adjudged to be or have been guilty of breach of a duty as a director, officer, employee, or agent of the society nor in relation to any matter in such action, suit, or proceeding, or threat thereof, which has been made the subject of a compromise settlement, unless in either case the person acted in good faith for a purpose the person reasonably believed to be in, or not opposed to, the best interests of the society and, in a criminal action or proceeding, in addition, had no reasonable cause to believe that his or her conduct was unlawful. The determination whether the conduct of the person met the standard required in order to justify indemnification and reimbursement in relation to any matter described in the preceding sentence may only be made by the supreme governing body or board of directors by a majority vote of a quorum consisting of persons who were not parties to the action, suit, or proceeding or by a court of competent jurisdiction. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of no contest, as to the person shall not create a conclusive presumption that the person did not meet the standard of conduct required in order to justify indemnification and reimbursement. The foregoing right of indemnification and reimbursement shall not be exclusive of other rights to which the person may be entitled as a matter of law and shall inure to the benefit of his or her heirs, executors, and administrators. (3) A society may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the society, or who is or was serving at the request of the society as a director, officer, employee, or agent of any other firm, corporation, or organization against any liability asserted against the person and incurred by him or her in any such capacity or arising out of his or her status as such, whether or not the society would have the power to indemnify the person against such liability under this section. History: Created 1988 Ky. Acts ch. 310, sec. 8, effective January 1, 1989.

KRS 304.29-090 Repealed, effective January 1, 1989

304.29-090. Repealed, effective January 1, 1989 Catchline at repeal: Constitution and laws of society -- Adoption and amendment -- Additional powers. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 9, effective June 18, 1970.

KRS 304.29-091 Waiver

304.29-091. Waiver The laws of the society may provide that no subordinate body, nor any of its subordinate officers or members, shall have the power or authority to waive any of the provisions of the laws of the society. The provision shall be binding on the society and every member and beneficiary of a member. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 9, effective January 1, 1989.

KRS 304.29-100 Repealed, effective January 1, 1989

304.29-100. Repealed, effective January 1, 1989 Catchline at repeal: Corporate powers retained. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 10, effective June 18, 1970.

KRS 304.29-101 Organization

304.29-101. Organization A domestic society organized on or after January 1, 1989, shall be formed as follows: (1) Seven (7) or more citizens of the United States, a majority of whom are citizens of this state, who desire to form a fraternal benefit society, may make, sign and acknowledge before some officer competent to take acknowledgment of deeds, articles of incorporation, in which shall be stated: (a) The proposed corporate name of the society, which shall not so closely resemble the name of any society or insurance company as to be misleading or confusing; (b) The purposes for which it is being formed and the mode in which its corporate powers are to be exercised. The purposes shall not include more liberal powers than are granted by this subtitle; and (c) The names and residences of the incorporators and the names, residences and official titles of all the officers, trustees, directors, or other persons who are to have and exercise the general control of the management of the affairs and funds of the society for the first year or until the ensuing election at which all such officers shall be elected by the supreme governing body, which election shall be held not later than one (1) year from the date of issuance of the permanent certificate of authority; (2) The articles of incorporation, duly certified copies of the society's bylaws and rules, copies of all proposed forms of certificates, applications therefor, and circulars to be issued by the society and a bond conditioned upon the return to applicants of the advanced payments if the organization is not completed within one (1) year shall be filed with the commissioner, who may require further information. The bond with sureties approved by the commissioner shall be in an amount, not less than three hundred thousand dollars ($300,000) nor more than one million five hundred thousand dollars ($1,500,000), as required by the commissioner. All documents filed shall be in the English language. If the purposes of the society conform to the requirements of this subtitle and all provisions of the law have been complied with, the commissioner shall so certify, retain and file the articles of incorporation and furnish the incorporators a preliminary certificate of authority authorizing the society to solicit members; (3) No preliminary certificate of authority granted under the provisions of this section shall be valid after one (1) year from its date or after such further period, not exceeding one (1) year, as may be authorized by the commissioner upon cause shown, unless the five hundred (500) applicants hereinafter required have been secured and the organization has been completed as herein provided. The articles of incorporation and all other proceedings thereunder shall become null and void in one (1) year from the date of the preliminary certificate of authority, or at the expiration of the extended period, unless the society shall have completed its organization and received a certificate of authority to do business; (4) Upon receipt of a preliminary certificate of authority from the commissioner, the society may solicit members for the purpose of completing its organization, shall collect from each applicant the amount of not less than one (1) regular monthly premium in accordance with its table of rates, and shall issue to each applicant a receipt for the amount so collected. No society shall incur any liability other than for the return of advance premium, nor issue any certificate, nor pay, allow, or offer or promise to pay or allow, any benefit to any person until: (a) Actual bona fide applications for benefits have been secured on not less than five hundred (500) applicants, and any necessary evidence of insurability has been furnished to and approved by the society; (b) At least ten (10) subordinate lodges have been established into which the five hundred (500) applicants have been admitted; (c) There has been submitted to the commissioner, under oath of the president or secretary, or corresponding officer of the society, a list of the applicants, giving their names, addresses, date each was admitted, name and number of the subordinate lodge of which each applicant is a member, amount of benefits to be granted and premiums therefor; and (d) It shall have been shown to the commissioner, by sworn statement of the treasurer, or corresponding officer of the society, that at least five hundred (500) applicants have each paid in cash at least one (1) regular monthly premium, which premiums in the aggregate shall amount to at least one hundred fifty thousand dollars ($150,000). The advance premiums shall be held in trust during the period of organization; and if the society has not qualified for a certificate of authority within one (1) year, the premiums shall be returned to the applicants; (5) The commissioner may make examination and require further information as he or she deems advisable. Upon presentation of satisfactory evidence that the society has complied with all the provisions of law, the commissioner shall issue to the society a certificate of authority to that effect and that the society is authorized to transact business pursuant to the provisions of KRS Chapter 304. The certificate of authority shall be prima facie evidence of the existence of the society at the date of the certificate. The commissioner shall cause a record of the certificate of authority to be made. A certified copy of the record may be given in evidence with like effect as the original certificate of authority; (6) Any incorporated society authorized to transact business in this state at the time this subtitle becomes effective shall not be required to reincorporate; and (7) No unincorporated or voluntary association shall be permitted to transact business in this state as a fraternal benefit society. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1391, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 10, effective January 1, 1989.

KRS 304.29-110 Repealed, January 1, 1989

304.29-110. Repealed, January 1, 1989 Catchline at repeal: Voluntary associations. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 11, effective June 18, 1970.

KRS 304.29-111 Amendment to laws

304.29-111. Amendment to laws (1) A domestic society may amend its laws in accordance with the provisions thereof by action of its supreme governing body at any regular or special meeting or, if its laws so provide, by referendum. The referendum may be held in accordance with the provisions of its laws by the vote of the voting members of the society, by the vote of delegates or representatives of voting members, or by the vote of local lodges. A society may provide for voting by mail. No amendment submitted for adoption by referendum shall be adopted unless, within six (6) months from the date of submission, a majority of the members voting shall have signified their consent to the amendment by one (1) of the methods herein specified. (2) No amendment to the laws of any domestic society shall take effect unless approved by the commissioner, who shall approve the amendment if he or she finds that it has been duly adopted and is not inconsistent with any requirement of the laws of this state or with the character, objects, and purposes of the society. Unless the commissioner shall disapprove any amendment within sixty (60) days after the filing, the amendment shall be considered approved. The approval or disapproval of the commissioner shall be in writing and mailed to the secretary or corresponding officer of the society at its principal office. In case the commissioner disapproves the amendment, the reasons therefor shall be stated in the written notice. (3) Within ninety (90) days from the approval by the commissioner, all amendments, or a synopsis, shall be furnished to all members of the society, either by mail or by publication in full in the official publication of the society. The affidavit of any officer of the society or of anyone authorized by it to mail any amendments or synopsis, stating facts which show that same have been duly addressed and mailed, shall be prima facie evidence that the amendments or synopsis, have been furnished the addressee. (4) Every foreign or alien society authorized to do business in this state shall file with the commissioner a duly certified copy of all amendments of, or additions to, its laws within ninety (90) days after the enactment of same. (5) Printed copies of the laws as amended, certified by the secretary or corresponding officer of the society, shall be prima facie evidence of the legal adoption thereof. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1392, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 11, effective January 1, 1989.

KRS 304.29-120 Repealed, effective January 1, 1989

304.29-120. Repealed, effective January 1, 1989 Catchline at repeal: Location of office -- Place of meeting. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 12, effective June 18, 1970.

KRS 304.29-121 Institutions

304.29-121. Institutions (1) A society may create, maintain and operate, or may establish organizations to operate, not-for-profit institutions to further the purposes permitted by paragraph (b) of subsection (1) of KRS 304.29-051. The institutions may furnish services free or at a reasonable charge. Any real or personal property owned, held or leased by the society for this purpose shall be reported in every annual statement, but shall not be allowed as an admitted asset of the society. (2) No society shall own or operate funeral homes or undertaking establishments. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 12, effective January 1, 1989.

KRS 304.29-130 Repealed, effective January 1, 1989

304.29-130. Repealed, effective January 1, 1989 Catchline at repeal: Conversion of fraternal benefit society into mutual life insurance company. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 13, effective June 18, 1970.

KRS 304.29-131 Reinsurance

304.29-131. Reinsurance (1) A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make reinsurance and authorized to do business in this state, or if not so authorized, one (1) which is approved by the commissioner; but no society may reinsure substantially all of its insurance in force without the written permission of the commissioner. It may take credit for the reserves on the ceded risks to the extent reinsured; but no credit shall be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective after January 1, 1989, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society. (2) Notwithstanding the limitation in subsection (1) of this section, a society may reinsure the risks of another society in a consolidation or merger approved by the commissioner under KRS 304.29-141. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1393, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 13, effective January 1, 1989.

KRS 304.29-140 Repealed, effective January 1, 1989

304.29-140. Repealed, effective January 1, 1989 Catchline at repeal: Qualifications for membership. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 14, effective June 18, 1970.

KRS 304.29-141 Consolidations and mergers

304.29-141. Consolidations and mergers (1) A domestic society may consolidate or merge with any other society by complying with the provisions of this section. It shall file with the commissioner: (a) A certified copy of the written contract containing in full the terms and conditions of the consolidation or merger; (b) A sworn statement by the president and secretary or corresponding officers of each society showing the financial condition thereof on a date fixed by the commissioner but not earlier than December 31, next preceding the date of the contract; (c) A certificate of the officers, duly verified by their respective oaths, that the consolidation or merger has been approved by a two-thirds (2/3) vote of the supreme governing body of each society, the vote being conducted at a regular or special meeting of each body, or, if the society's laws so permit, by mail; and (d) Evidence that at least sixty (60) days prior to the action of the supreme governing body of each society, the text of the contract has been furnished to all members of each society either by mail or by publication in full in the official publication of each society. (2) If the commissioner finds that the contract is in conformity with the provisions of this section, that the financial statements are correct and that the consolidation or merger is just and equitable to the members of each society, the commissioner shall approve the contract and issue a certificate to that effect. Upon approval, the contract shall be in full force and effect unless any society which is a party to the contract is incorporated under the laws of any other state or territory. If the consolidation or merger shall not become effective unless and until it has been approved as provided by the laws of the state or territory and a certificate of approval filed with the commissioner of this state or, if the laws of the state or territory contain no such provision, the consolidation or merger shall not become effective unless and until it has been approved by the commissioner of insurance of the state or territory and a certificate of the approval filed with the commissioner of this state. (3) Upon the consolidation or merger becoming effective, all the rights, franchises and interests of the consolidated or merged societies in and to every species of property, real, personal or mixed, and things in action thereunto belonging shall be vested in the society resulting from or remaining after the consolidation or merger without any other instrument, except that conveyances of real property may be evidenced by proper deeds; and the title to any real estate or interest therein, vested under the laws of this state in any of the societies consolidated or merged, shall not revert or be in any way impaired by reason of the consolidation or merger, but shall vest absolutely in the society resulting from or remaining after the consolidation or merger. (4) The affidavit of any officer of the society or of anyone authorized by it to mail any notice or document, stating that the notice or document has been duly addressed and mailed, shall be prima facie evidence that the notice or document has been furnished the addressees. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1394, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 14, effective January 1, 1989.

KRS 304.29-150 Repealed, effective January 1, 1989

304.29-150. Repealed, effective January 1, 1989 Catchline at repeal: Amendments to articles of incorporation, constitution or bylaws. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 15, effective June 18, 1970.

KRS 304.29-151 Conversion into mutual life insurance company

304.29-151. Conversion into mutual life insurance company Any domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of the insurance laws of this state for mutual life insurance companies. A plan of conversion shall be prepared in writing by the board of directors setting forth in full the terms and conditions of conversion. The affirmative vote of two-thirds (2/3) of all members of the supreme governing body at a regular or special meeting shall be necessary for the approval of the plan. No conversion shall take effect unless and until approved by the commissioner who may give approval if he or she finds that that proposed change is in conformity with the requirements of law and not prejudicial to the certificate holders of the society. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1395, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 15, effective January 1, 1989.

KRS 304.29-160 Repealed, effective January 1, 1989

304.29-160. Repealed, effective January 1, 1989 Catchline at repeal: Society may create, maintain and operate charitable, benevolent or educational institutions -- Ownership, operation of funeral homes and undertaking establishments prohibited. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 16, effective June 18, 1970.

KRS 304.29-161 Benefits

304.29-161. Benefits (1) A society may provide the following contractual benefits in any form: (a) Death benefits; (b) Endowment benefits; (c) Annuity benefits; (d) Temporary or permanent disability benefits; (e) Hospital, medical or nursing benefits; (f) Monument or tombstone benefits to the memory of deceased members; and (g) Other benefits as authorized for life insurers and which are not inconsistent with this subtitle. (2) A society shall specify in its rules those persons who may be issued, or covered by, the contractual benefits in subsection (1) of this section, consistent with providing benefits to members and their dependents. A society may provide benefits on the lives of children under the minimum age for adult membership upon application of an adult person. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 16, effective January 1, 1989.

KRS 304.29-170 Repealed, effective January 1, 1989

304.29-170. Repealed, effective January 1, 1989 Catchline at repeal: Exemption of individuals from liability. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 17, effective June 18, 1970.

KRS 304.29-171 Beneficiaries

304.29-171. Beneficiaries (1) The owner of a benefit contract shall have the right at all times to change the beneficiary or beneficiaries in accordance with the laws or rules of the society, unless the owner waives this right by specifically requesting in writing that the beneficiary designation be irrevocable. A society may, through its laws or rules, limit the scope of beneficiary designations and shall provide that no revocable beneficiary shall have or obtain any vested interest in the proceeds of any certificate until the certificate has become due and payable in conformity with the provisions of the benefit contract. (2) A society may make provision for the payment of funeral benefits to the extent of the portion of any payment under a certificate as might reasonably appear to be due to any person equitably entitled thereto by reason of having incurred expense occasioned by the burial of the member. The portion so paid shall not exceed the sum of ten thousand dollars ($10,000). (3) If, at the death of any person insured under a benefit contract, there is no lawful beneficiary to whom the proceeds shall be payable, the amount of the benefit, except to the extent that funeral benefits may be paid as provided, shall be payable to the personal representative of the deceased insured. If the owner of the certificate is other than the insured, the proceeds shall be payable to the owner. Effective: July 15, 1998 History: Amended 1998 Ky. Acts ch. 472, sec. 1, effective July 15, 1998. -- Created 1988 Ky. Acts ch. 310, sec. 17, effective January 1, 1989.

KRS 304.29-180 Repealed, effective January 1, 1989

304.29-180. Repealed, effective January 1, 1989 Catchline at repeal: Benefits. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 18, effective June 18, 1970.

KRS 304.29-181 Benefits not attachable

304.29-181. Benefits not attachable No money or other benefit, charity, relief or aid to be paid, provided or rendered by any society, shall be liable to attachment, garnishment or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment by the society. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 18, effective January 1, 1989.

KRS 304.29-190 Repealed, effective January 1, 1989

304.29-190. Repealed, effective January 1, 1989 Catchline at repeal: Benefits on lives of children. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 19, effective June 18, 1970.

KRS 304.29-191 The benefit contract

304.29-191. The benefit contract (1) Every society authorized to do business in this state shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided. The certificate, together with any riders or endorsements attached thereto, the laws of the society, the application for membership, the application for insurance and declaration of insurability, if any, signed by the applicant, and all amendments to each, shall constitute the benefit contract, as of the date of issuance, between the society and the owner, and the certificate shall so state. A copy of the application for insurance and declaration of insurability, if any, shall be endorsed upon or attached to the certificate. All statements on the application shall be representations and not warranties. Any waiver of this provision shall be void. (2) Any changes, additions or amendments to the laws of the society duly made or enacted subsequent to the issuance of the certificate, shall bind the owner and the beneficiaries, and shall govern and control the benefit contract in all respects the same as though the changes, additions or amendments had been made prior to and were in force at the time of the application for insurance, except that no change, addition or amendment shall destroy or diminish benefits which the society contracted to give the owner as of the date of issuance. (3) Any person upon whose life a benefit contract is issued prior to attaining the age of majority shall be bound by the terms of the application and certificate and by all the laws and rules of the society to the same extent as though the age of majority had been attained at the time of application. (4) A society shall provide in its laws that, if its reserves as to all or any class of certificates become impaired, its board of directors or corresponding body may require that there shall be paid by the owner to the society the amount of the owner's equitable proportion of the deficiency as ascertained by its board, and that if the payment is not made either: (a) It shall stand as an indebtedness against the certificate and draw interest not to exceed the rate specified for certificate loans under the certificates; or (b) In lieu of or in combination with paragraph (a), the owner may accept a proportionate reduction in benefits under the certificate. The society may specify the manner of the election and which alternative is to be presumed if no election is made. (5) Copies of any of the documents mentioned in this section, certified by the secretary or corresponding officer of the society, shall be received as evidence of the terms and conditions thereof. (6) No certificate shall be delivered or issued for delivery in this state unless a copy of the form has been filed with and approved by the commissioner in the manner provided for like policies issued by life insurers in this state. Every life, accident, health, or disability insurance certificate and every annuity certificate issued on or after one (1) year from January 1, 1989 shall meet the standard contract provision requirements not inconsistent with this subtitle for like policies issued by life insurers in this state, except that a society may provide for a grace period for payment of premiums of one (1) full month in its certificates. The certificates shall also contain a provision stating the amount of premiums which are payable under the certificate and a provision reciting or setting forth the substance of any sections of the society's laws or rules in force at the time of issuance of the certificate which, if violated, will result in the termination or reduction of benefits payable under the certificate. If the laws of the society provide for expulsion or suspension of a member, the certificate shall also contain a provision that any member so expelled or suspended, except for nonpayment of a premium or within the contestable period for material misrepresentation in the application for membership or insurance, shall have the privilege of maintaining the certificate in force by continuing payment of the required premium. (7) Benefit contracts issued on the lives of persons below the society's minimum age for adult membership may provide for transfer of control or ownership to the insured at an age specified in the certificate. A society may require approval of an application for membership in order to effect this transfer, and may provide in all other respects for the regulation, government and control of certificates and all rights, obligations, and liabilities incident thereto and connected therewith. Ownership rights prior to transfer shall be specified in the certificate. (8) A society may specify the terms and conditions on which benefit contracts may be assigned. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1396, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 19, effective January 1, 1989.

KRS 304.29-200 Repealed, effective January 1, 1989

304.29-200. Repealed, effective January 1, 1989 Catchline at repeal: Nonforfeiture benefits, cash surrender values certificate loans, and other options -- Interest rates on loans. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Amended 1984 Ky. Acts ch. 265, sec. 2, effective July 13, 1984. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 20, effective June 18, 1970.

KRS 304.29-201 Nonforfeiture benefits, cash surrender values, certificate loans and other options

304.29-201. Nonforfeiture benefits, cash surrender values, certificate loans and other options (1) For certificates issued prior to one (1) year after January 1, 1989, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall comply with the provisions of law applicable immediately prior to January 1, 1989. (2) For certificates issued on or after one (1) year from January 1, 1989, for which reserves are computed on the commissioner's 1941 standard ordinary mortality table, the commissioner's 1941 standard industrial table or the commissioner's 1958 standard ordinary mortality table, or the commissioner's 1980 standard mortality table, or anymore recent table made applicable to life insurers, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the corresponding amount ascertained in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits based upon such tables. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 20, effective January 1, 1989.

KRS 304.29-210 Repealed, effective January 1, 1989

304.29-210. Repealed, effective January 1, 1989 Catchline at repeal: Beneficiaries -- Funeral benefits. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 21, effective June 18, 1970.

KRS 304.29-211 Investments

304.29-211. Investments A society shall invest its funds only in such investments as are authorized by the laws of this state for the investment of assets of life insurers and subject to the limitations thereon. Any foreign or alien society permitted or seeking to do business in this state which invests its funds in accordance with the laws of the state, district, territory, county or province in which it is incorporated, shall be held to meet the requirements of this section for the investment of funds. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 21, effective January 1, 1989.

KRS 304.29-220 Repealed, effective January 1, 1989

304.29-220. Repealed, effective January 1, 1989 Catchline at repeal: Benefits not liable to attachment, garnishment, other process. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 22, effective June 18, 1970.

KRS 304.29-221 Funds

304.29-221. Funds (1) All assets shall be held, invested and disbursed for the use and benefit of the society and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment on the surrender of any part thereof, except as provided in the benefit contract. (2) A society may create, maintain, invest, disburse and apply any special fund or funds necessary to carry out any purpose permitted by the laws of the society. (3) A society may, pursuant to resolution of its supreme governing body, establish and operate one (1) or more separate accounts and issue contracts on a variable basis, subject to the provisions of law regulating life insurers establishing accounts and issuing contracts. To the extent the society deems it necessary in order to comply with any applicable federal or state laws, or any rules issued thereunder, the society may adopt special procedures for the conduct of the business and affairs of a separate account; may, for persons having beneficial interests therein, provide special voting and other rights, including without limitation special rights and procedures relating to investment policy, investment advisory services, selection of certified public accountants, and selection of a committee to manage the business and affairs of the account; and may issue contracts on a variable basis to which subsections (2) and (4) of KRS 304.29-191 shall not apply. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 22, effective January 1, 1989.

KRS 304.29-230 Repealed, effective January 1, 1989

304.29-230. Repealed, effective January 1, 1989 Catchline at repeal: The contract. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 23, effective June 18, 1970.

KRS 304.29-231 Exemptions

304.29-231. Exemptions Except as herein provided, societies shall be governed by this subtitle and shall be exempt from all other provisions of the insurance laws of this state unless they be expressly designated therein, or unless it is specifically made applicable by this subtitle. Societies shall be subject to the applicable fees and penalties as specified in Subtitles 4 and 99 of KRS Chapter 304. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 23, effective January 1, 1989.

KRS 304.29-240 Repealed, effective January 1, 1989

304.29-240. Repealed, effective January 1, 1989 Catchline at repeal: Filing of certificate, application, rider, indorsement forms with commissioner -- Standard life benefit certificate provisions -- Withdrawal of approval -- Hearings. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 24, effective June 18, 1970.

KRS 304.29-241 Taxation

304.29-241. Taxation Every society organized or licensed under this subtitle shall be a charitable and benevolent institution, and all of its funds shall be exempt from all and every state, county, district, municipal and school tax, other than taxes on real estate and office equipment. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 24, effective January 1, 1989.

KRS 304.29-250 Repealed, effective January 1, 1989

304.29-250. Repealed, effective January 1, 1989 Catchline at repeal: Prohibited provisions in life benefit certificates. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 25, effective June 18, 1970.

KRS 304.29-251 Valuation

304.29-251. Valuation (1) Standards of valuation for certificates issued prior to one (1) year after January 1, 1989, shall be those provided by the laws applicable immediately prior to January 1, 1989. (2) The minimum standards of valuation for certificates issued on or after one (1) year from January 1, 1989, shall be based on the following tables: (a) For certificates of life insurance -- the commissioner's 1941 standard ordinary mortality table, the commissioner's 1941 standard industrial mortality table, the commissioner's 1958 standard ordinary mortality table, the commissioner's 1980 standard ordinary mortality table, or any more recent table made applicable to life insurers; (b) For annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits and for noncancellable accident and health benefits -- such tables as are authorized for use by life insurers in this state. All of the above shall be under valuation methods and standards, including interest assumptions, in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits. (3) The commissioner may, in his or her discretion, accept other standards for valuation if he or she finds that the reserves produced thereby will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard herein prescribed. The commissioner may, in his or her discretion, vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra hazardous lives by any society authorized to do business in this state. (4) Any society, with the consent of the commissioner of insurance of the state of domicile of the society and under the conditions, if any, which the commissioner may impose, may establish and maintain reserves on its certificates in excess of the reserves required thereunder, but the contractual rights of any benefit member shall not be affected thereby. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1397, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 25, effective January 1, 1989.

KRS 304.29-260 Repealed, effective January 1, 1989

304.29-260. Repealed, effective January 1, 1989 Catchline at repeal: Accident and health insurance certificates -- Total and permanent disability insurance certificates -- Filing and approval. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 26, effective June 18, 1970.

KRS 304.29-261 Reports

304.29-261. Reports (1) Every society transacting business in this state shall annually, on or before the first day of March, file with the commissioner a true statement of its financial condition, transactions and affairs for the preceding calendar year and pay the fee required under KRS 304.4-010 for filing it. The statement shall be in general form and context as approved by the National Association of Insurance Commissioners for fraternal benefit societies and as supplemented by additional information required by the commissioner. (2) As part of the annual statement, each society shall, on or before the first day of March, file with the commissioner a valuation of its certificates in force on December 31 last preceding. The commissioner may, in his or her discretion for cause shown, extend the time for filing the valuation for not more than two (2) calendar months. The valuation shall be done in accordance with the standards specified in KRS 304.29-251. The valuation and underlying data shall be certified by a qualified actuary or, at the expense of the society, verified by the actuary of the department of insurance of the state of domicile of the society. (3) A society failing to file the annual statement in the form and within the time provided by this section shall forfeit one hundred dollars ($100) for each day during which the default continues; and, upon notice by the commissioner, its authority to do business in this state shall cease while the default continues. (4) Each society authorized to transact business in this state pursuant to this subtitle shall comply with KRS 304.2-205. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1398, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 483, sec. 25, effective July 15, 1998. -- Created 1988 Ky. Acts ch. 310, sec. 26, effective January 1, 1989.

KRS 304.29-270 Repealed, effective January 1, 1989

304.29-270. Repealed, effective January 1, 1989 Catchline at repeal: Waiver. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 27, effective June 18, 1970.

KRS 304.29-271 Annual license

304.29-271. Annual license Societies which are now authorized to transact business in this state may continue to do business until May 1 next succeeding January 1, 1989. The authority of the societies, and all societies hereafter licensed, may be renewed annually, but in all cases shall terminate on the succeeding April 30. However, a license so issued shall continue in full force and effect until the new license be issued or specifically refused. For each license or renewal, the society shall, prior to May 1, pay to the commissioner a fee as specified in Subtitle 4 of this chapter. A duly certified copy or duplicate of the license shall be prima facie evidence that the licensee is a fraternal benefit society within the meaning of this subtitle. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1399, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 27, effective January 1, 1989.

KRS 304.29-280 Repealed, effective January 1, 1989

304.29-280. Repealed, effective January 1, 1989 Catchline at repeal: Re-insurance. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 28, effective June 18, 1970.

KRS 304.29-281 Examination of societies

304.29-281. Examination of societies Societies shall be subject to the provisions of KRS 304.2-210, 304.2-220, 304.2-230, 304.2-240, 304.2-250, 304.2-260, 304.2-270, 304.2-280, 304.2-290, 304.2-300, and Subtitle 2 of this chapter for determining financial condition, market conduct, and business practices. Effective: July 13, 2004 History: Amended 2004 Ky. Acts ch. 24, sec. 34, effective July 13, 2004. -- Created 1988 Ky. Acts ch. 310, sec. 28, effective January 1, 1989.

KRS 304.29-290 Repealed, effective January 1, 1989

304.29-290. Repealed, effective January 1, 1989 Catchline at repeal: Licenses. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Amended 1982 Ky. Acts ch. 320, sec. 25, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 29, effective June 18, 1970.

KRS 304.29-291 Foreign or alien society -- Admission

304.29-291. Foreign or alien society -- Admission No foreign or alien society shall transact business in this state without a license issued by the commissioner. Any society desiring admission to this state shall comply substantially with the requirements and limitations of this subtitle applicable to domestic societies. Any society may be licensed to transact business in this state upon filing with the commissioner: (1) A duly certified copy of its articles of incorporation; (2) A copy of its bylaws, certified by its secretary or corresponding officer; (3) A power of attorney to the commissioner as prescribed in KRS 304.29-351; (4) A statement of its business under oath of its president and secretary or corresponding officers in a form prescribed by the commissioner, duly verified by an examination made by the supervising insurance official of its home state or other state, territory, province, or country, satisfactory to the commissioner; (5) Certification from the proper official of its home state, territory, province, or country that the society is legally incorporated and licensed to transact business therein; (6) Copies of its certificate forms; and (7) Such other information as the commissioner may deem necessary; and upon a showing that its assets are invested in accordance with the provisions of this subtitle. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1400, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 29, effective January 1, 1989.

KRS 304.29-300 Repealed, effective January 1, 1989

304.29-300. Repealed, effective January 1, 1989 Catchline at repeal: Foreign or alien society -- Admission. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 30, effective June 18, 1970.

KRS 304.29-301 Injunction -- Liquidation -- Receivership of domestic society

304.29-301. Injunction -- Liquidation -- Receivership of domestic society (1) If the commissioner, upon investigation, finds that a domestic society: (a) Has exceeded its powers; (b) Has failed to comply with any provision of this subtitle; (c) Is not fulfilling its contracts in good faith; (d) Has a membership of less than four hundred (400) after an existence of one (1) year or more; or (e) Is conducting business fraudulently or in a manner hazardous to its members, creditors, the public or the business, the commissioner shall notify the society of the deficiency or deficiencies and state in writing the reasons for his or her dissatisfaction. The commissioner shall issue a written notice to the society requiring that the deficiency or deficiencies which exist be corrected. After the notice, the society shall have a thirty (30) day period in which to comply with the commissioner's request for correction; and if the society fails to comply, the commissioner shall notify the society of the findings of noncompliance and require the society to show cause on a date named why it should not be enjoined from carrying on any business until the violation complained of shall have been corrected, or why an action in Franklin Circuit Court should not be commenced against the society. (2) If on that date the society does not present good and sufficient reasons why it should not be so enjoined or why such action should not be commenced, the commissioner may present the facts to the Attorney General who shall, if he or she deems the circumstances warrant, commence an action to enjoin the society from transacting business. (3) The court shall notify the officers of the society of a hearing. If after a full hearing it appears that the society should be so enjoined or liquidated or a receiver appointed, the court shall enter the necessary order. No society so enjoined shall have the authority to do business until: (a) The commissioner finds that the violation complained of has been corrected; (b) The costs of the action shall have been paid by the society, if the court finds that the society was in default as charged; (c) The court has dissolved its injunction; and (d) The commissioner has reinstated the certificate of authority. (4) If the court orders the society liquidated, it shall be enjoined from carrying on any further business. The receiver of the society shall take possession of the books, papers, money and other assets of the society, and, under the direction of the court, close the affairs of the society and distribute its funds to those entitled to them. (5) No action under this section shall be recognized in any court of this state unless brought by the Attorney General upon request of the commissioner. If a receiver is to be appointed for a domestic society, the court shall appoint the commissioner as receiver. (6) The provisions of this section relating to hearing by the commissioner, action by the Attorney General at the request of the commissioner of insurance, hearing by the court, injunction and receivership shall be applicable to a society which shall voluntarily determine to discontinue business. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1401, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 30, effective January 1, 1989.

KRS 304.29-310 Repealed, effective January 1, 1989

304.29-310. Repealed, effective January 1, 1989 Catchline at repeal: Injunction -- Liquidation -- Receivership of domestic society. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 31, effective June 18, 1970.

KRS 304.29-311 Suspension, revocation, or refusal of license of foreign or alien society

304.29-311. Suspension, revocation, or refusal of license of foreign or alien society (1) If the commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state: (a) Has exceeded its powers; (b) Has failed to comply with any of the provisions of this subtitle; (c) Is not fulfilling its contracts in good faith; or (d) Is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public; the commissioner shall notify the society of the deficiency or deficiencies and state in writing the reasons for his or her dissatisfaction. The commissioner shall issue a written notice to the society requiring that the deficiency or deficiencies which exist are corrected. After the notice, the society shall have a thirty (30) day period in which to comply with the commissioner's request for correction; and if the society fails to comply, the commissioner shall notify the society of the findings of noncompliance and require the society to show cause on a date named why its license should not be suspended, revoked, or refused. If on that date the society does not present good and sufficient reason why its authority to do business in this state should not be suspended, revoked, or refused, the commissioner may suspend or refuse the license of the society to do business in this state until satisfactory evidence is furnished to the commissioner that suspension or refusal should be withdrawn or the commissioner may revoke the authority of the society to do business in this state. (2) Nothing contained in this section shall be taken or construed as preventing any society from continuing in good faith all contracts made in this state during the time the society was legally authorized to transact business herein. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1402, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 31, effective January 1, 1989.

KRS 304.29-320 Repealed, January 1, 1989

304.29-320. Repealed, January 1, 1989 Catchline at repeal: Suspension, revocation or refusal of license of foreign or alien society. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 32, effective June 18, 1970.

KRS 304.29-321 Injunction

304.29-321. Injunction No application or petition for injunction against any domestic, foreign, or alien society, or lodge thereof, shall be recognized in any court of this state unless made by the Attorney General upon request of the commissioner. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1403, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 32, effective January 1, 1989.

KRS 304.29-330 Repealed, effective January 1, 1989

304.29-330. Repealed, effective January 1, 1989 Catchline at repeal: Insurance agents -- Definition. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 33, effective June 18, 1970.

KRS 304.29-331 Licensing of agents of fraternal benefit societies

304.29-331. Licensing of agents of fraternal benefit societies (1) An agent of a fraternal benefit society shall be licensed as an agent in accordance with the provisions of Subtitle 9 of this chapter regulating all aspects of agent licenses. (2) Subsection (1) of this section includes the requirement that the agent shall satisfactorily complete the continuing education requirements in accordance with KRS 304.9-295. (3) An agent of a society shall be appointed by the society in accordance with the provisions of Subtitle 9 of this chapter regulating all aspects of agent appointments. (4) No examination or license shall be required of any regular salaried officer, employee, or member of a licensed society who devotes substantially all of his services to activities other than the solicitation of fraternal insurance contracts from the public, and who receives for the solicitation of the contracts no commission or other compensation directly dependent upon the amount of business obtained. (5) Any agent, representative, or member of a society who devotes, or intends to devote, less than fifty percent (50%) of the person's time to the solicitation and procurement of insurance contracts for the society shall be exempt from the requirements of subsection (1) of this section. Any person who in the preceding calendar year has solicited and procured life insurance contracts on behalf of any society in an amount of insurance in excess of fifty thousand dollars ($50,000), or in the case of any other kind or kinds of insurance which the society might write, on the persons of more than twenty-five (25) individuals and who has received or will receive a commission or other compensation therefor, shall be presumed to be devoting, or intending to devote, fifty percent (50%) of time to the solicitation or procurement of insurance contracts for such society. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 143, sec. 20, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 378, sec. 2, effective July 15, 1998. -- Created 1988 Ky. Acts ch. 310, sec. 33, effective January 1, 1989.

KRS 304.29-340 Repealed, effective January 1, 1989

304.29-340. Repealed, effective January 1, 1989 Catchline at repeal: Insurance agents -- License required. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 34, effective June 18, 1970.

KRS 304.29-341 Unfair methods of competition -- Unfair and deceptive acts and practices

304.29-341. Unfair methods of competition -- Unfair and deceptive acts and practices Every society authorized to do business in this state shall be subject to the provisions of Subtitle 12 of this chapter relating to unfair trade practices. Nothing in the provisions shall be construed as applying to or affecting the right of any society to determine its eligibility requirements for membership, or be construed as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation or affiliated organization of the society. Effective: January 1, 1989 History: Created 1988 Ky. Acts ch. 310, sec. 34, effective January 1, 1989.

KRS 304.29-350 Repealed, effective January 1, 1989

304.29-350. Repealed, effective January 1, 1989 Catchline at repeal: Insurance agents -- Payment of commissions prohibited except to licensed agents. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 35, effective June 18, 1970.

KRS 304.29-351 Service of process

304.29-351. Service of process (1) Every society authorized to do business in this state shall appoint in writing the Secretary of State and each successor in office to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served, and shall agree that any lawful process against it which is served on the attorney shall be of the same legal force and validity as if served upon the society, and that the authority shall continue in force so long as any liability remains outstanding in this state. Copies of the appointment, certified by the commissioner, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original might be admitted. (2) Service of process in any action may be made by service upon the Secretary of State as provided in KRS 304.3-230. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1404, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 35, effective January 1, 1989.

KRS 304.29-360 Repealed, effective January 1, 1989

304.29-360. Repealed, effective January 1, 1989 Catchline at repeal: Insurance agents -- Prerequisites of licenses. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Amended 1986 Ky. Acts ch. 437, sec. 21, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 320, sec. 26, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 36, effective June 18, 1970.

KRS 304.29-361 Review

304.29-361. Review All decisions and findings of the commissioner made under the provisions of this subtitle shall be subject to review by proper proceedings in any court of competent jurisdiction in this state. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1405, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 36, effective January 1, 1989.

KRS 304.29-370 Repealed, effective January 1, 1989

304.29-370. Repealed, effective January 1, 1989 Catchline at repeal: Insurance agents -- Issuance and renewal of licenses. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Amended 1982 Ky. Acts ch. 320, sec. 27, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 37, effective June 18, 1970.

KRS 304.29-371 Exemption of certain societies

304.29-371. Exemption of certain societies (1) Nothing contained in this chapter shall be so construed as to affect or apply to: (a) Grand or subordinate lodges of societies, orders, or associations now doing business in this state which provide benefits exclusively through local or subordinate lodges; (b) Orders, societies or associations which admit to membership only persons engaged in one (1) or more crafts or hazardous occupations, in the same or similar lines of business, insuring only their own members and their families, and the ladies societies or ladies' auxiliaries to such orders, societies, or associations; (c) Domestic societies which limit their membership to employees of a particular city or town, designated firm, business house, or corporation which provide for a death benefit of not more than four hundred dollars ($400) or disability benefits of not more than three hundred fifty dollars ($350) to any person in any one (1) year, or both; or (d) Domestic societies or associations of a purely religious, charitable, or benevolent description, which provide for a death benefit of not more than four hundred dollars ($400) or for disability benefits of not more than three hundred fifty dollars ($350) to any one (1) person in any one (1) year, or both. (2) Any society or association described in paragraph (c) or (d) of subsection (1) of this section which provides for death or disability benefits for which benefit certificates are issued, and any society or association included in paragraph (d) of subsection (1) of this section which has more than one thousand (1,000) members, shall not be exempted from the provisions of this subtitle but shall comply with all requirements therein. (3) No society which, by the provisions of this section, is exempt from the requirements of this subtitle, except any society described in paragraph (b) of subsection (1) of this section, shall give or allow, or promise to give or allow to any person any compensation for procuring new members. (4) Every society which provides for benefits in case of death or disability resulting solely from accident, and which does not obligate itself to pay natural death or sick benefits, shall have all of the privileges and be subject to all the applicable provisions and regulations of this subtitle except that the provisions thereof relating to medical examination, valuations of benefit certificates, and incontestability, shall not apply to the society. (5) The commissioner may require from any society or association, by examination or otherwise, such information as will enable the commissioner to determine whether the society or association is exempt from the provisions of this subtitle. (6) Societies, exempted under the provisions of this section, shall also be exempt from all other provisions of the insurance laws of this state. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1406, effective July 15, 2010. -- Created 1988 Ky. Acts ch. 310, sec. 37, effective January 1, 1989.

KRS 304.29-380 Repealed, effective January 1, 1989

304.29-380. Repealed, effective January 1, 1989 Catchline at repeal: "Insurance agents" -- Notice of termination of appointment filed with commissioner. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 38, effective June 18, 1970.

KRS 304.29-390 Repealed, effective January 1, 1989

304.29-390. Repealed, effective January 1, 1989 Catchline at repeal: Insurance agents -- Revocation, suspension of licenses. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 39, effective June 18, 1970.

KRS 304.29-400 Repealed, effective January 1, 1989

304.29-400. Repealed, effective January 1, 1989 Catchline at repeal: Service of process on society. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Amended 1982 Ky. Acts ch. 319, sec. 9, effective July 15, 1982; and ch. 320, sec. 28, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 114, sec. 72, effective July 15, 1980. -- Amended 1974 Ky. Acts ch. 315, sec. 51, effective June 21, 1974. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 40, effective June 18, 1970.

KRS 304.29-410 Repealed, effective January 1, 1989

304.29-410. Repealed, effective January 1, 1989 Catchline at repeal: Injunctions against societies. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 41, effective June 18, 1970.

KRS 304.29-420 Repealed, January 1, 1989

304.29-420. Repealed, January 1, 1989 Catchline at repeal: Judicial review of commissioner's findings, decisions. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 42, effective June 18, 1970.

KRS 304.29-430 Repealed, effective January 1, 1989

304.29-430. Repealed, effective January 1, 1989 Catchline at repeal: Funds. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 43, effective June 18, 1970.

KRS 304.29-440 Repealed, effective January 1, 1989

304.29-440. Repealed, effective January 1, 1989 Catchline at repeal: Permissible investments. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 44, effective June 18, 1970.

KRS 304.29-450 Repealed, effective January 1, 1989

304.29-450. Repealed, effective January 1, 1989 Catchline at repeal: Reports. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Amended 1982 Ky. Acts ch. 320, sec. 29, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 45, effective June 18, 1970.

KRS 304.29-455 Repealed, effective January 1, 1989

304.29-455. Repealed, effective January 1, 1989 Catchline at repeal: Application of KRS 304.2-205. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1986 Ky. Acts ch. 263, sec. 2, effective July 15, 1986.

KRS 304.29-460 Repealed, 1982

304.29-460. Repealed, 1982 Catchline at repeal: Penalties for failure to file annual statement. History: Repealed 1982 Ky. Acts ch. 320, sec. 52, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 46, effective June 18, 1970.

KRS 304.29-470 Repealed, effective January 1, 1989

304.29-470. Repealed, effective January 1, 1989 Catchline at repeal: Valuations: reserves. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 47, effective June 18, 1970.

KRS 304.29-480 Repealed, effective January 1, 1989

304.29-480. Repealed, effective January 1, 1989 Catchline at repeal: Valuations: deferred payments due under incurred claims, matured certificates. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 48, effective June 18, 1970.

KRS 304.29-490 Repealed, effective January 1, 1989

304.29-490. Repealed, effective January 1, 1989 Catchline at repeal: Valuations: standards - Certification of valuation, underlying data. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- -- Amended 1982 Ky. Acts ch. 333, sec. 1, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 49, effective June 18, 1970.

KRS 304.29-500 Repealed, effective January 1, 1989

304.29-500. Repealed, effective January 1, 1989 Catchline at repeal: Examination of domestic societies. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 50, effective June 18, 1970.

KRS 304.29-510 Repealed, effective January 1, 1989

304.29-510. Repealed, effective January 1, 1989 Catchline at repeal: Examination of foreign and alien societies. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 51, effective June 18, 1970.

KRS 304.29-520 Repealed, effective January 1, 1989

304.29-520. Repealed, effective January 1, 1989 Catchline at repeal: Commissioner not to make public any financial statement, report or finding until society afforded opportunity to answer. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 52, effective June 18, 1970.

KRS 304.29-530 Repealed, effective January 1, 1989

304.29-530. Repealed, effective January 1, 1989 Catchline at repeal: Misrepresentation - False or misleading statement prohibited. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Amended 1982 Ky. Acts ch. 320, sec. 30, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 53, effective June 18, 1970.

KRS 304.29-540 Repealed, effective January 1, 1989

304.29-540. Repealed, effective January 1, 1989 Catchline at repeal: Discrimination and rebates. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 54, effective June 18, 1970.

KRS 304.29-550 Repealed, effective January 1, 1989

304.29-550. Repealed, effective January 1, 1989 Catchline at repeal: Taxation. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 55, effective June 18, 1970.

KRS 304.29-560 Repealed, effective January 1, 1989

304.29-560. Repealed, effective January 1, 1989 Catchline at repeal: Exemptions. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 56, effective June 18, 1970.

KRS 304.29-565 Assessment

304.29-565. Assessment Fraternal benefit societies may be assessed pursuant to KRS 304.2-440. Effective: July 15, 1988 History: Created 1988 Ky. Acts ch. 225, sec. 24, effective July 15, 1988.

KRS 304.29-570 Repealed, effective January 1, 1989

304.29-570. Repealed, effective January 1, 1989 Catchline at repeal: Exemption of certain societies. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 57, effective June 18, 1970.

KRS 304.29-580 Repealed, effective July 15, 1982

304.29-580. Repealed, effective July 15, 1982 Catchline at repeal: Penalties. History: Repealed 1982 Ky. Acts ch. 320, sec. 52, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 29, sec. 58, effective June 18, 1970.

KRS 304.29-590 Repealed, January 1, 1989

304.29-590. Repealed, January 1, 1989 Catchline at repeal: Unfair claims settlement by fraternal benefit society or agent prohibited. History: Repealed 1988 Ky. Acts ch. 310, sec. 42, effective January 1, 1989. -- Created 1984 Ky. Acts ch. 171, sec. 3, effective July 13, 1984.

KRS 304.29-600 Long-term health care benefits

304.29-600. Long-term health care benefits Fraternal benefit societies issuing long-term care insurance shall comply with KRS 304.14-600 to 304.14-625. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 423, sec. 7, effective July 14, 1992.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38743Fetched: 10/20/2026

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