40-1506. Reserve fund; investment. Whenever the losses and expenses in any year shall be less than the amount of the entire premium income of the year, the remainder of the premium income shall be set apart in the reserve fund: Provided, That when the reserve fund shall equal seven thousand five hundred dollars the company may return to the members so much of the premium income in excess of the amount required for losses and expenses as may exceed ten percentum of the total premium income of the year. Whenever the company's premium income of the year is insufficient to pay the losses and expenses of the year the company shall pay such obligations from the reserve fund. Such part of the reserve fund of the company as is not needed for immediate use of the company shall be invested as provided by section 40-227.
History: L. 1927, ch. 231, 40-1506; June 1.
Structure Kansas Statutes
Article 15 - Mutual Hail Insurance Companies
40-1501 Formation of companies; membership fee.
40-1503 Application for insurance; premium; insured as members of company.
40-1504 Assessments; adjustment and payment of losses; losses paid when adjusted, when.
40-1505 Recovery of assessments; limitation of liability of member.
40-1506 Reserve fund; investment.
40-1507 Annual meeting; voting of members.
40-1508 Officers; election; term.
40-1509 Meetings of directors.
40-1511 Directors; election; vacancy.
40-1512 Policies; liability; membership.
40-1513 Misrepresentations by assured.
40-1514 Withdrawal by policyholder.
40-1515 Uniform rates for same class of risks.
40-1516 Unlawful acts of foreign companies; reinsurance therewith by domestic company prohibited.
40-1517 Attorney's fee in actions.