806 KAR 15:020. Wholesale life insurance; employer's contribution; dividends

Link to law: http://www.lrc.ky.gov/kar/806/015/020.htm
Published: 2015

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      806 KAR 15:020.

Wholesale life insurance; employer's contribution; dividends.

 

      RELATES TO: KRS

304.15-020

      STATUTORY AUTHORITY:

KRS 304.2-110

      NECESSITY, FUNCTION,

AND CONFORMITY: KRS 304.2-110 provides that the executive director of

Insurance may make reasonable rules and administrative regulations necessary

for or as an aid to the effectuation of any provision of the Kentucky Insurance

Code. This administrative regulation clarifies the meaning of the phrase

"funds contributed by the employer" as used in KRS 304.15-020. It

also requires the payment of dividends on such policies to the insured.

 

      Section 1. As used

in KRS 304.15-020, the phrase "funds contributed by the employer"

shall be deemed to mean those funds contributed by the employer which make an

effective contribution to the net cost of the insurance, on the life of the

employee.

 

      Section 2. Any

dividend returned upon a whole life insurance policy shall be applied for the

sole benefit of insured employees. (I-15.02; 1 Ky.R. 869; eff. 5-14-75; TAm

eff. 8-9-2007.)