Title XXV, Business and Financial Institutions

(1) All risk retention groups and insurers providing liability insurance to purchasing groups shall be subject to taxation and shall be deemed to be insurers for the purpose of assessing and collecting taxes on premiums. All risk retention groups and insurers issuing liability in…

A policy of insurance issued to a risk retention group or any member of a risk retention group shall not be required to be countersigned as provided in KRS 304.3-250.

regulations -- Commissioner to enforce. (1) A risk retention group doing business in this state shall be subject to all applicable unfair claims settlement practices laws and regulations as provided in KRS 304.3- 200, 304.12-220, and 304.12-230. (2) The commissioner is authorized…

Any order issued by any United States District Court enjoining a risk retention group from soliciting or selling insurance or operating in any state, in all states, or any territory or possession of the United States upon a finding that such group is in a hazardous financial cond…

group or purchasing group. (1) No person shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state from a risk retention group unless such person is licensed as an insurance agent in accordance with Subtitle 9 of this chapter. (a) H…

The commissioner shall apply the fees set forth in KRS 304.4-010 to risk retention groups. Subtitle 4 of this chapter applies to this subtitle.

The commissioner may promulgate reasonable regulations necessary for, or as an aid to the effectuation of, this subtitle.

As used in this subtitle, unless the context requires otherwise: (1) "Criminal syndicate" means five (5) or more persons collaborating to promote or engage in any fraudulent insurance act, as set forth in KRS 304.47-020(1), on a continuing basis; (2) "Division" means the Division…

Compensatory damages -- Concurrent jurisdiction of Attorney General -- Reporting of fraudulent acts -- Application of section. (1) For the purposes of this subtitle, a person or entity commits a "fraudulent insurance act" if he or she engages in any of the following, including bu…

insurance act -- Penalties. (1) Any person who has been convicted of any felony offense involving dishonesty or a breach of trust, or who has been convicted of a fraudulent insurance act under this subtitle, and who knowingly engages or participates in the business of insurance i…

(1) All applications shall contain a statement in a form approved by the Department of Insurance that clearly states in substance the following: "Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containin…

Resisting arrest or interfering with investigation. (1) There is created within the Department of Insurance a Division of Insurance Fraud Investigation. (2) (a) The commissioner shall appoint qualified persons to serve as special investigators for the Division of Insurance Fraud …

Notification of prosecutor -- Immunity from civil liability. (1) Any person, other than those specified in subsection (2) of this section, having knowledge or believing that a fraudulent insurance act or any other act or practice which, upon conviction, constitutes a felony or mi…

commissioner. (1) Documents, materials, or other information in the possession or control of the commissioner that is provided according to this subtitle shall be confidential by law and privileged, and shall not be subject to the Kentucky Open Records Act, KRS 61.872 to KRS 61.8…

Notwithstanding KRS 304.47-055, the commissioner shall publish for public distribution on the department's website an annual insurance fraud report that includes but is not limited to the following for the previous calendar year: (1) The number of insurance fraud reports made to …

(1) In the absence of malice, fraud, or gross negligence, a person shall not be subject to civil liability for libel, slander, or any other relevant tort by virtue of filing reports or furnishing other information required by this chapter or requested by the division or its autho…

division as costs or fines. All costs of administration and operation of the division shall be borne by the Department of Insurance. Any money or other property that is awarded to the division as costs of investigation or as a fine shall be credited to the Department of Insurance…

(1) Every insurer admitted to do business in the Commonwealth shall maintain effective procedures and resources to deter and investigate fraudulent insurance acts prohibited by this subtitle, including a unit that will investigate suspected fraudulent insurance acts. For the purp…

The purpose of this subtitle is to establish minimum standards for liability self-insurance groups to assure that such groups are providing adequate coverage for professional or public liability risks. Except as specifically provided in this subtitle no other provision of KRS Cha…

(1) "Administrator" means an individual, partnership, corporation, association, or other legal entity engaged by a liability self-insurance group's board of trustees to carry out the policies established by the group's board of trustees and to provide day-to- day management of th…

This subtitle applies to a group or association of health facility and health services institutions subject to the certificate of need and licensure provisions of KRS Chapter 216B or a group of Kentucky for profit corporations (as defined in KRS Chapter 271B), or the members of a…

A liability self-insurance group regulated under this subtitle and administrative regulations promulgated pursuant thereto shall be subject to the provisions of this subtitle, Subtitle 12 of this chapter, and KRS 304.2-310 to 304.2-370, 304.20-100, and 304.99- 082, to the extent …

in force. No person shall in this state be, act as, or hold himself or herself out as a liability self- insurance group unless he or she holds a certificate of filing from the commissioner. All certificates of filing issued by the commissioner prior to July 15, 1994, shall remain…

A proposed liability self-insurance group shall file with the commissioner an application for a certificate of filing accompanied by a nonrefundable filing fee of five dollars ($5). Each application for a certificate of filing shall be submitted to the commissioner upon a form pr…

Upon receipt of an application for issuance for a certificate of filing, the commissioner shall issue or deny the same. Issuance of a certificate of filing shall be granted only if the commissioner finds that the applicant has complied with KRS 304.48-050, has paid the applicatio…

(1) This section applies to a group applying for and holding a certificate of filing as a liability self-insurance group. (2) To obtain and to maintain its certificate of filing a liability self-insurance group shall have sufficient financial strength to pay all public or profess…

A liability self-insurance group shall notify the executive director immediately of any change in the information required to be filed under KRS 304.48-050 or in the manner of its compliance with KRS 304.48-070.

(1) As used in this section, "nationally recognized statistical rating organization" or "NRSRO" means a credit rating agency approved by the United States Securities and Exchange Commission to provide assessments of the creditworthiness of financial instruments. (2) The funds of …

education -- Appointment. (1) An agent of a liability self-insurance group shall be licensed as an agent with property and casualty lines of authority in accordance with Subtitle 9 of this chapter regulating all aspects of agent licenses. (2) Subsection (1) of this section includ…

self-insurance group by commissioner. The commissioner or any person authorized by him or her shall have power to examine the financial condition, affairs, and management of any liability self-insurance group subject to the provisions of this subtitle. The commissioner shall have…

Any liability self-insurance group accepting a certificate of filing pursuant to this subtitle is deemed to have appointed the Secretary of State as its attorney to receive service of legal process issued against it in Kentucky. This appointment shall be irrevocable, shall bind a…

request of group -- Merger with another group. (1) A certificate of filing remains in effect until terminated at the request of the group or suspended or revoked by the commissioner pursuant to KRS 304.48-220. (2) The commissioner shall not grant the request of the liability self…

Directors equivalent to trustees for subtitle. (1) Each group shall be operated by a board of trustees which shall consist of not less than two (2) persons selected in the manner prescribed by the liability self-insurance group or by other laws of the Commonwealth. The trustees s…

bankruptcy. (1) An employer joining a liability self-insurance group after the group has been issued a certificate of filing shall submit an application for membership to the board of trustees or its administrator and enter into the indemnity agreement. Membership shall take effe…

Exception. (1) Except as provided in subsection (2) of this section, no service company or its employees, officers, or directors shall be an employee, officer, or director of, or have either a direct or indirect interest in, an administrator. No administrator or its employees, of…

statements and acknowledgments -- Authority for administrative regulations -- Member's right to statement upon request. (1) All liability self-insurance groups shall file with the commissioner a statement of financial condition audited by an independent certified public accountan…

charges -- Filing fee. Liability self-insurance groups shall file with the commissioner their rates, underwriting guidelines, evidence of coverage, and any changes therein in accordance with KRS 304.13-051 and 304.14-120 and administrative regulations promulgated thereunder. The …

Liability self-insurance groups shall establish contribution and assessment payment plans.

(1) Every member of a liability self-insurance group shall receive written evidence of coverage by the group. (2) All evidences of coverage issued pursuant to this section shall contain coverage terms, conditions, and exclusions. (3) All evidences of coverage issued pursuant to t…

Statement in application for a certificate of filing. (1) If the liability self-insurance group is formed by governmental entities and coverage is provided for motor vehicle liability, the group is not required to comply with administrative regulations promulgated pursuant to sub…

(1) The commissioner may suspend or revoke any certificate of filing issued to a liability self-insurance group under this subtitle if the commissioner finds that any of the following conditions exist: (a) The liability self-insurance group is operating significantly in contraven…

The commissioner may promulgate reasonable administrative regulations not inconsistent with the provisions of this subtitle that the commissioner deems necessary for the proper administration of this subtitle. Nothing in this subtitle nor any administrative regulation adopted und…

(1) No person shall make any deceptive statement or omit material facts in connection with solicitation for membership in a liability self-insurance group. (2) Liability self-insurance groups shall not engage in unfair claims settlement practices and shall: (a) Respond to claiman…

fund year -- Determination of insolvency -- Delinquency proceedings -- Financing of payments by governmental entities. (1) If the assets of a liability self-insurance group are at any time insufficient to enable the group to discharge its legal liabilities, other obligations, and…

(1) After a hearing or upon agreement by the liability self-insurance group, the commissioner may suspend or revoke the certificate of filing of a liability self- insurance group, impose a civil penalty of up to five thousand dollars ($5,000) per violation on a liability self-ins…

As used in KRS 304.49-010 to 304.49-230, unless the context requires otherwise: (1) "Affiliated company" means any company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management; (…