40-1018. Reserve fund. A reserve fund equal to not less than ten percentum nor more than twenty-five percentum, as the board of directors may determine, of the premiums received on insurance shall be set apart and maintained out of the cash receipts of the company until such reserve fund shall amount to at least four thousand dollars per million dollars of insurance in force, after which the percent of the cash receipts that shall be added to this reserve may be reduced at the discretion of the board of directors. And whenever the cash in the hands of the treasurer of any such company, not included in the reserve fund, is insufficient to pay any loss that may accrue, then such deficiency shall be taken from the reserve fund, but such reserve fund shall not be reduced below one half until an assessment shall be made upon the deposit notes held by the company sufficient to fully reimburse the reserve fund. Any such diminution of the reserve fund shall be held to be a liability to be provided for by assessments on the deposit notes. Such part of the reserve fund of the company as is not needed for immediate use of the company shall be invested by the directors in such securities as are authorized by this code. Any other reserves that have been accumulated by the company may be made a part of this reserve fund.
History: L. 1927, ch. 231, 40-1018; June 1.
Structure Kansas Statutes
Article 10 - Mutual Fire And Tornado Companies
40-1002 Classification of insurable property.
40-1003 No policy issued until required application, premium notes and securities received.
40-1004 Directors; election; vacancy.
40-1005 Annual meeting of members; proxies.
40-1006 Officers; election; term.
40-1008 Liability for losses; assessments; indebtedness.
40-1009 Recovery of assessments or on notes; cash policies not assessable.
40-1011 Property to be assessed and taxed.
40-1013 Classification of risks.
40-1015 Withdrawal of member of company; return premium; cancellation of policy, notice.
40-1016 Limitation on amount of risk; reinsurance.
40-1017 Execution and contents of policy.
40-1019 Statement for annual meeting.
40-1020 Other corporations as members of company; vote.
40-1022 Creation and investment of such fund; liability.
40-1023 Scope of insurance by companies having guarantee fund; foreign companies.
40-1024 Cash or notes in payment of premiums; liability of members of company.
40-1025 Notice of creation of guarantee fund; examination; certificate of authority.
40-1026 Reinsurance of risks; assessment.
40-1027 Mutual fire and tornado companies; paid-up capital and surplus requirements.
40-1028 Consolidation of business into one class; vote of directors.
40-1029 Advances of money and issuance of certificates of indebtedness.