304.42-110 Duties and powers of executive director. In
addition to the duties and powers enumerated elsewhere in this
subtitle: (1) The executive director 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 is declared and the amount of
the impairment is determined, serve a demand upon the impaired
insurer to make good the impairment within a reasonable time.
Notice to the impaired insurer shall constitute notice to its
shareholders, if any. The failure of the insurer to promptly comply
with the demand shall not excuse the association from the
performance of its powers and duties under this subtitle; and (c)
In any liquidation or rehabilitation proceeding involving a
domestic insurer, be appointed as the liquidator or rehabilitator.
If a foreign or alien member insurer is subject to a liquidation
proceeding in its domiciliary jurisdiction or state of entry, the
executive director may be appointed conservator. (2) The
executive director may suspend or revoke, after notice and hearing
conducted in accordance with KRS Chapter 13B, the certificate of
authority to transact insurance in this state of any member insurer
which fails to pay an assessment when due or fails to comply with
the plan of operation. As an alternative the executive director may
levy a forfeiture on any member insurer which fails to pay an
assessment when due. A forfeiture shall not exceed five percent
(5%) of the unpaid assessment per month, but no forfeiture shall be
less than one hundred dollars ($100) per month. (3) Any final
action of the board of directors or the association may be appealed
to the executive director by any member insurer if the appeal is
taken within sixty (60) days of its receipt of notice of the action
being appealed. Any final order of the executive director shall be
subject to judicial review as set forth in Subtitle 2 of this
chapter and KRS Chapter 13B. (4) The liquidator,
rehabilitator, or conservator of any impaired insurer may notify
all interested persons of the effect of this subtitle.
Effective: July 15, 1998 History: Amended 1998 Ky.
Acts ch. 537, sec. 7, effective July 15, 1998. -- Amended 1996 Ky.
Acts ch. 318, sec. 248, effective July 15, 1996. -- Amended 1988
Ky. Acts ch. 282, sec. 5, effective July 15, 1988. -- Created 1978
Ky. Acts ch. 282, sec. 11, effective June 17, 1978. Legislative
Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11,
85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes
to correct statutory references to agencies and officers whose
names have been changed in 2005 legislation confirming the
reorganization of the executive branch. Such a correction has been
made in this section. Page 1 of 1
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