2006 Kentucky Revised Statutes - .140   Operation of group by board of trustees -- Powers and duties -- Directors equivalent to trustees for subtitle.

304.48-140 Operation of group by board of trustees -- Powers and duties -- 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. Except for liability self-insurance groups formed by governmental entities, the trustees shall not be officers, employees, or agents of an administrator or servicing organization. All trustees shall be residents of Kentucky or officers of corporations authorized to do business in Kentucky. The trustees shall have the authority to administer the operations of the liability self-insurance group, such as assuring that there is adequate funding to cover professional or public liabilities, assuring that all claims are paid promptly, and that all necessary precautions are taken to safeguard the assets of the group. (2) The board of trustees shall: (a)  Maintain responsibility for all moneys collected or disbursed from the group; (b)  Maintain minutes of its meetings and make the minutes available to the executive director; and, (c)  Designate an administrator to carry out the policies established by the board of trustees and to provide day-to-day management of the group, and delineate in the written minutes of its meetings the areas of authority it delegates to the administrator. (3) The board of trustees shall not: (a)  Extend credit to individual group members for payment of contributions or assessments, except pursuant to payment plans filed with the executive director; or (b)  Permit the loan of any moneys to, or borrow any moneys from, the group or in the name of the group. However, a liability self-insurance group formed by governmental entities may borrow moneys in the name of the group. (4) In its discretion, the liability self-insurance group may refer to its trustees as directors. If this is done, the provisions of this subtitle referring to trustees shall be construed as referring to directors. Effective: July 15, 1994 History:Created 1994 Ky. Acts ch. 358, sec. 14, effective July 15, 1994. 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