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