2006 Kentucky Revised Statutes - .250   Assessment of members when assets insufficient or when deficiency in fund year -- Determination of insolvency.

304.48-250 Assessment of members when assets insufficient or when deficiency in fund year -- Determination of insolvency. (1) If the assets of a liability insurance group are at any time insufficient to enable the group to discharge its legal liabilities, other obligations, and to maintain the required reserves under this subtitle, the group shall immediately levy an assessment upon its members for the amount necessary to make up the deficiency. (2) If there is a deficiency in any fund year, the deficiency shall be made up immediately, from the following: (a)  Surplus from a fund year other than the current fund year after prior notice of the transfer has been given to the executive director; (b)  Administrative funds; (c)  Assessment of membership; or (d)  Alternate methods as the executive director may direct or approve. (3) If a liability self-insurance group fails to assess its members within thirty (30) days to make up a deficit, the executive director shall order it to do so. This subsection shall not apply to liability self-insurance groups formed by governmental entities which do not have joint and several liability. (4) If a liability self-insurance group fails to make the required assessment of its members within thirty (30) days after the executive director orders it to do so, or if the deficiency is not fully made up within sixty (60) days after the date on which the assessment is made, or within a longer period of time as may be permitted by the executive director, the group shall be determined to be insolvent. Effective: July 15, 1994 History:Created 1994 Ky. Acts ch. 358, sec. 25, 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