40-1506. Reserve fund; investment. - Kansas Statutes

40-1506

Chapter 40.--INSURANCE Article 15.--MUTUAL HAIL INSURANCE COMPANIES

      40-1506.   Reserve fund; investment.Whenever the losses and expenses in any year shall be less than theamount of the entire premium income of the year, the remainder of thepremium income shall be set apart in the reserve fund: Provided, Thatwhen the reserve fund shall equal seven thousand five hundred dollars thecompany may return to the members so much of the premium income in excessof the amount required for losses and expenses as may exceed ten percentumof the total premium income of the year. Whenever the company's premiumincome of the year is insufficient to pay the losses and expenses of theyear the company shall pay such obligations from the reserve fund. Suchpart of the reserve fund of the company as is not needed for immediate useof the company shall be invested as provided by section 40-227.

      History:   L. 1927, ch. 231, 40-1506; June 1.