Title XXV, Business and Financial Institutions

plan -- Deficit -- Contributions by members. (1) All policies issued by the association shall be written for the term of one (1) year. The directors of the association may elect to issue policies on an occurrence basis or a claims made basis. No policy form shall be used by the a…

(1) There is hereby created a stabilization reserve fund which shall be administered by three (3) directors, one (1) of whom shall be the commissioner or the commissioner's deputy. The remaining two (2) directors shall be appointed by the commissioner. One (1) shall be a represen…

coverage. (1) Any attorney-at-law shall, on or after the effective date of the plan of operation, be entitled to apply to the association for legal professional liability insurance coverage. Such application may be made on behalf of an applicant by an agent authorized by the appl…

All insurers which are members of the association shall participate in its writings, expenses, servicing, allowance, management fees, and losses in the proportion that the net direct premiums of each such member, excluding that portion of premiums attributable to the operation of…

The association shall be governed by a board of thirteen (13) directors. Five (5) directors shall be elected by the insurance companies which are members of the association, at a meeting of the member companies at a time and place designated by the commissioner, by cumulative vot…

(1) Any applicant to the association, any person insured pursuant to this subtitle, or their representatives, or any affected insurer, may appeal to the commissioner within thirty (30) days after any rule, action, or decision by or on behalf of the association, with respect to th…

The association shall file in the office of the commissioner annually, on or before the first day of each March, a statement containing information with respect to its transactions, condition, operations, and affairs during the preceding year. Such statement shall contain such ma…

The commissioner shall make an examination into the affairs of the association at least annually. Such examination shall be conducted and the report thereon filed in the manner prescribed in KRS Chapter 304, Subtitle 2. The expenses of such examinations shall be paid by the assoc…

There shall be no liability on the part of, and no cause of action of any nature shall arise against the association, the commissioner or the commissioner's authorized representatives or any other person or organization, for any statements or actions made in good faith by them du…

No member of the board of directors of the stabilization reserve fund who is otherwise a public officer or employee shall suffer a forfeiture of his office or employment or any loss or diminution in the rights and privileges appertaining thereto, by reason of membership on the bo…

This subtitle shall be known and may be cited as the Kentucky Life and Health Insurance Guaranty Association Act.

The purpose of this subtitle is to protect the persons specified in KRS 304.42-030(1), subject to certain limitations, against failure in the performance of contractual obligations under life, health, and annuity policies, plans, or contracts specified in KRS 304.42- 030(2) becau…

(1) This subtitle shall provide coverage for the policies and contracts specified in subsection (2) of this section: (a) To persons who, regardless of where they reside (except for nonresident certificate holders or enrollees under group policies or contracts), are the beneficiar…

This subtitle shall be construed to effect the purpose under KRS 304.42-020.

As used in this subtitle: (1) "Account" means either of the three (3) accounts created under KRS 304.42-060; (2) "Association" means the Kentucky Life and Health Insurance Guaranty Association created under KRS 304.42-060; (3) "Authorized assessment" or the term "authorized" when…

Accounts -- Supervision by commissioner. (1) There is created a nonprofit legal entity to be known as the Kentucky Life and Health Insurance Guaranty Association. All member insurers shall be and remain members of the association as a condition of their license or authority to tr…

(1) The board of directors of the association shall consist of not less than five (5) nor more than nine (9) member insurers serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the approval of the commiss…

(1) If a member insurer is an impaired insurer, the association may, in its discretion, and subject to any conditions imposed by the association that do not impair the contractual obligations of the impaired insurer and that are approved by the commissioner: (a) Guarantee, assume…

under protest. (1) For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the member insurers, separately for each account, at such time and for such amounts as the board finds necessary. Assessm…

(1) (a) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective u…

In addition to the duties and powers enumerated elsewhere in this subtitle: (1) The commissioner shall: (a) Upon request of the board of directors, provide the association with a statement of the premiums in the appropriate states for each member insurer; (b) When an impairment i…

impairments. To aid in the detection and prevention of member insurer insolvencies or impairments: (1) It shall be the duty of the commissioner: (a) To notify the commissioners of all of the other states, territories of the United States and the District of Columbia when he or sh…

(1) A member insurer, other than a nonprofit hospital, medical, surgical, dental, or health service corporation, may offset its tax liability to this state imposed against it under KRS 136.320(3) and (4), 136.330, 136.340, or 136.350, whichever may be applicable, against the asse…

(1) Nothing in this subtitle shall be construed to reduce the liability for unpaid assessments of the insureds on an impaired or insolvent insurer operating under a plan with assessment liability. (2) Records shall be kept of all meetings of the board of directors to discuss the …

The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved by the commissioner and a report o…

The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real property.

There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer or its agents or employees, the association or its agents or employees, members of the board of directors, or the commissioner or the commissioner's representati…

All proceedings in which the insolvent insurer is a party in any court in this state shall be stayed sixty (60) days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on any matters germane to its powe…

No person, including a member insurer, agent, affiliate of a member insurer, life settlement provider, or life settlement broker shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulat…

As used in this subtitle, unless the context requires otherwise: (1) "Department" means the Department of Insurance; (2) "Mine subsidence" means the collapse of underground coal mines resulting in direct damage to a structure. It does not include loss caused by earthquake, landsl…

(1) There is hereby established a fund to be known as the "Mine Subsidence Insurance fund." The fund shall be operated pursuant to this subtitle. The commissioner of the department shall determine how the fund shall be administered. In the discretion of the commissioner, the fund…

Administrative regulation -- Reimbursement of living expenses of displaced owner. (1) (a) Every insurance policy issued or renewed insuring on a direct basis a structure located in a county or portion of a county in this state, except for counties exempted pursuant to KRS 304.44-…

An insurer may refuse to provide subsidence coverage on a structure evidencing unrepaired subsidence damage until necessary repairs are made or where the insurer has declined, nonrenewed or canceled all coverage under a policy for underwriting reasons unrelated to mine subsidence…

(1) All insurers writing property insurance covering structures in this state shall enter into a reinsurance agreement with the administrator in which each insurer agrees to cede to the administrator one hundred percent (100%), up to the maximum total insured value established un…

The administrator shall exempt policies to be written or renewed in counties or portions of counties which do not have underground coal bearing strata or underground coal mines or in counties which have not voted, through their fiscal courts, to approve of the availability of min…

The proportion of total subsidence insurance premiums collected by each insurer which shall be retained by the insurer as a ceding commission shall be fixed by the administrator. The remainder of the premiums shall be remitted by the insurer to the administrator. The ceding commi…

The administrator shall pay the insurer all amounts due within ninety (90) days after receiving a loss report. The administrator shall require the loss report to include an itemized statement of the damage, repairs made and the cost of each repair and any other documentation the …

Every insurer shall report at times designated by the administrator the amounts of premiums collected and shall report semiannually on dates established by the administrator an itemized list of all losses paid, including the policy number and location of structures insured pursua…

(1) Except in the case of fraud by an insurer, the administrator does not have any right of recourse against the insurer and the insurer may settle losses in the customary manner; and (2) The administrator may require an insurer to attempt recovery from a policyholder for the amo…

(1) Each insurer issuing mine subsidence insurance policies in this Commonwealth and the administrator shall have the right of subrogation, and in enforcing such right, the insurer or the administrator, as the case may be, shall be deemed the real party in interest and shall purs…

The administrator may invest the mine subsidence insurance fund in the same types of investments which are permitted for authorized insurers under Subtitle 7 of this chapter. All income from investments credited to the mine subsidence insurance fund shall be credited to that fund…

The administrator has the power, duty and responsibility to establish and maintain the fund and supervise in all respects, consistent with the provisions of this subtitle, the operation and management of the mine subsidence insurance program established in this subtitle and to do…

These provisions establishing the mine subsidence insurance fund shall not be implemented until federal money is received by the department for administration costs and a reserve. However, the department may take any preliminary action to prepare for implementation when federal m…

(1) The purpose of this subtitle is to regulate the formation or operation of risk retention groups and purchasing groups in the state formed pursuant to the provisions of the Product Liability Risk Retention Act of 1981 (P.L. 97-45) and the Liability Risk Retention Act of 1986 (…

As used in this subtitle: (1) "Board of directors" or "board" means the governing body of a risk retention group elected by its owners to establish policy, elect or appoint officers and committees, and make other governing decisions; (2) "Commissioner" means the commissioner of t…

liability insurance pursuant to this subtitle. (1) A risk retention group shall, pursuant to the provisions of this chapter, be chartered and licensed to write only liability insurance pursuant to this subtitle, and, except as otherwise provided in this subtitle, shall comply wit…