Title XXV, Business and Financial Institutions

commissioner -- Release -- Commissioner to approve custodian bank or trust company for security deposits -- Qualifications for approval. (1) The group shall provide security deposits to the commissioner on a form prescribed by the commissioner in an amount not less than two hundr…

compensation self-insured groups -- Approval by commissioner -- Investments -- Financing of payments by governmental entities. (1) As used in this section, "nationally recognized statistical rating organization" or "NRSRO" means a credit rating agency approved by the United State…

insurance coverage -- Statement of financial condition. (1) The information and reports required by this section shall be filed by the self- insured group with the commissioner on an annual basis. (2) Within one hundred twenty (120) days from the end of the self-insured group's f…

A workers' compensation self-insured group shall notify the commissioner immediately of any material change in the information required to be filed under this subtitle or in the manner of its compliance with KRS Chapter 342.

-- Appointment of agent optional. (1) An agent of a workers' compensation self-insured group shall be licensed as an agent with casualty line of authority in accordance with Subtitle 9 of this chapter. (2) Workers' compensation self-insured groups shall not be required to appoint…

commissioner. The commissioner or his or her designee shall have power to examine the financial condition, affairs, and management of any workers' compensation self-insured group subject to the provisions of this subtitle. He or she shall have free access to all the books, papers…

A workers' compensation self-insured group issued a certificate of filing under 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 an…

Prohibited acts -- Power to contract, sue, and be sued -- Contracts for administration of group. (1) Each self-insured group shall be operated by a board of trustees. Except for a self- insured group formed by governmental entities, the board of trustees for each self- insured gr…

cancellation of member by group -- Voluntary withdrawal -- Liability on termination of membership, insolvency, or bankruptcy. (1) An employer joining a workers' compensation self-insured group after the group has been issued a certificate of filing shall submit an application for…

Except for governmental entities, the trustees shall not accept an employer as a member unless the employer has a net worth of at least two (2) times its estimated annual premium, unless the employer pays its full estimated annual premium in advance. The trustees shall not accept…

commissioner. (1) If a self-insured group decides to dissolve its self-insured program, the trustees shall: (a) File a detailed plan of dissolution with the commissioner for prior approval; (b) Provide sixty (60) days written notice by certified mail to the commissioner and each …

The board of trustees of each workers' compensation self-insured group shall establish a formal conflict-of-interest policy or code of conduct applicable to the board of trustees, officers, and employees that includes a description of the system used to monitor compliance with th…

(1) In addition to reports required under KRS 304.50-060, each workers' compensation self-insured group shall file with the commissioner an annual statement of financial condition audited by an independent certified public accountant on or before one hundred and twenty (120) days…

- Grounds for disapproval -- Filing fee -- Public inspection of filings. (1) A workers' compensation self-insured group shall file with the commissioner its rates and supplementary rating information and any changes made to its rates and supplementary information. (a) Within one …

Administrative regulations -- Eligibility to write excess liability coverage for group. (1) The commissioner shall promulgate administrative regulations setting forth the requirements for aggregate excess insurance and the standards for granting a waiver, but a workers' compensat…

(1) In the computation of the retained liabilities of the self-insured group, reserves for claims or projected reserves for claims may be discounted for their present value if: (a) The discounting is based upon the computation of a qualified actuary; and (b) The computations and …

(1) Each member of a workers' compensation self-insured 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 purs…

remedy deficit -- Delinquency proceedings -- Bulk reinsurance. (1) If a workers' compensation self-insured group has a members' fund balance that is less than the minimum amount required by this subtitle of one million dollars ($1,000,000) and not a negative members' fund balance…

Hearing and appeal -- Notification requirements and exceptions. (1) After a hearing or upon agreement by the workers' compensation self-insured group, the commissioner may suspend or revoke the certificate of filing of a self-insured group, impose a civil penalty of up to ten tho…

Nothing in this subtitle nor any administrative regulation adopted under the authority of this subtitle shall require any workers' compensation self-insured group formed by governmental entities or its members to take any action in violation of the Constitution of the Commonwealt…

commissioner within 15 days. (1) A person shall not: (a) Make any deceptive statement or omit material facts in connection with solicitation for membership in a workers' compensation self-insured group; or (b) Guarantee the payment of dividends or use statements or words in, or i…

A group self-insurance fund regulated under this subtitle and administrative regulations promulgated by the commissioner 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 ap…

Annually on or before the fifteenth day of December, the commissioner shall make a report to the Governor and the Interim Joint Committees of Banking and Insurance and Economic Development and Workforce Investment on the status of workers' compensation self-insured groups.

Interstate Insurance Product Regulation Compact Pursuant to terms and conditions of this compact, the Commonwealth of Kentucky seeks to join with other states and establish the Interstate Insurance Product Regulation Compact, and thus become a member of the Interstate Insurance P…

As used in this subtitle: (1) "Blanket travel insurance" means a policy of travel insurance issued to any eligible group providing coverage for specific classes of persons defined in the policy, with coverage provided to all members of the eligible group without a separate charge…

(1) The provisions of this subtitle shall: (a) Apply to travel insurance that covers any resident of this state, and is sold, solicited, negotiated, or offered in this state, and policies and certificates are delivered or issued for delivery in this state; and (b) Not apply to ca…

insurance under supervision of travel insurance producer -- Written materials -- Employees and representatives -- Related compensation. (1) As used in this section: (a) "Offer and disseminate," "offers and disseminates," or "offering and disseminating" means to: 1. Provide genera…

(1) A travel protection plan may be offered for one (1) price if: (a) The plan clearly discloses to the consumer, at or prior to the time of purchase, that: 1. It includes travel insurance, travel assistance services, and cancellation fee waivers, as applicable; and 2. The consum…

Information provided to consumers -- Acts that do not constitute unfair trade practices -- Negative option or opt-out. (1) "Aggregator site" means a Web site that provides access to information for use in comparison shopping regarding insurance products from more than one (1) ins…

license -- Insurer's responsibility. (1) A person holding a managing general agent license or an administrator license in this state, or an insurance agent licensed in this state with property and casualty lines of authority for activities permitted under that license, may direct…

underwriting standards. (1) Notwithstanding any other provision of this chapter: (a) Except as provided in paragraph (b) of this subsection, travel insurance shall be classified and filed, for purposes of rates and forms, as inland marine insurance; and (b) Travel insurance that …

The commissioner may promulgate administrative regulations to implement the provisions of this subtitle.

This subtitle may be cited as the Travel Insurance Act.

provisions. Paid family leave insurance: (1) May be: (a) Included in a group disability income insurance policy or contract purchased by an employer; (b) Offered as a rider, amendment, or supplemental policy provision to a group disability income insurance policy or contract purc…

(1) As used in this section, unless the context requires otherwise: (a) "Armed Forces of the United States" includes members of the: 1. National Guard; and 2. The United States Armed Forces Reserves; (b) "Child" includes a person who is: 1. Either: a. Under eighteen (18) years of…

A paid family leave insurance policy or contract shall set forth: (1) The details and requirements for each of the covered family leave reasons specified in the policy or contract; (2) (a) The length of family leave benefits that are available for each covered family leave reason…

(1) An insurer shall not limit, exclude, or reduce an employee's eligibility for benefits provided under a paid family leave insurance policy or contract unless the limitation, exclusion, or reduction is set forth in the policy or contract as required under KRS 304.53-030. (2) A …

(1) Benefits due and payable under a paid family leave insurance policy or contract issued under the authority of this chapter shall be paid periodically and promptly as required under KRS 304.12-235 unless the family leave period is contested. (2) Benefits shall not be considere…

The commissioner may promulgate administrative regulations in accordance with KRS Chapter 13A to effectuate, or as an aid to effectuation of, the provisions of this subtitle.

This subtitle may be cited as the Paid Family Leave Insurance Act.

As used in this subtitle, unless the context requires otherwise: (1) "Accounting practices and procedures manual" means the accounting practices and procedures manual, as amended, published by the National Association of Insurance Commissioners; and (2) "SSAP" means the statement…

(1) In any determination of the financial condition of an insurer, there shall be allowed as assets only such assets as are owned by the insurer and which consist of: (a) Cash in the possession of the insurer, or in transit under its control, and including the true balance of any…

The following expressly shall not be allowed as assets in any determination of the financial condition of an insurer: (1) Good will, trade names, and other like intangible assets, except as expressly permitted and as prescribed by the National Association of Insurance Commissione…

(1) Any member, officer, director, employee, or attorney in fact of any company, association, or exchange licensed to do an insurance business in this state, who on behalf of such company, association, or exchange, borrows, rents, hires, leases, or otherwise engages the use of st…

In any determination of the financial condition of an insurer, capital stock and liabilities to be charged against its assets shall include: (1) The amount of its capital stock outstanding, if any, less the amount of shares held by the insurer as treasury stock as provided in sub…

(1) As to property, casualty, surety and mortgage guaranty insurance the insurer shall maintain an unearned premium reserve on all policies in force. (2) Except as provided in KRS 304.6-060 as to marine and transportation risks and in subsection (3) of this section the unearned p…