304.50-045 Initial and continuing financial solvency requirements.
(1)
(2)
To obtain and maintain a certificate of filing, a workers’ compensation self-insured
group shall have sufficient financial strength to pay all benefits for compensation
required by KRS Chapter 342 for risks covered by the group, including known
claims and expenses and incurred but not reported claims and expenses.
(a) The trustees and administrators shall provide a fidelity bond to the
commissioner in the amount of not less than three hundred thousand dollars
(0,000), which may be subject to a deductible not exceeding ten thousand
dollars (,000), for each trustee, each administrator and the administrator's
employees.
(b) The fiscal agent shall provide a fidelity bond to the trustees of not less than
fifty percent (50%) or one million dollars (,000,000), whichever is lower, of
the funds to be handled by the fiscal agent. This requirement shall be waived
if the fiscal agent is a national bank.
(c) The service organization shall provide a fidelity bond to the trustees of not
less than two (2) times the amount of the revolving fund.
(d) In lieu of the bonds required under paragraphs (a), (b), and (c) of this
subsection, the trustees may secure a fidelity blanket bond in an amount not
less than fifty percent (50%) of the self-insured group's premium or two
million dollars (,000,000), whichever is lower. The fidelity blanket bond
shall include the trustees, the administrator, the service organization,
personnel of the service organization, and the fiscal agent, unless the fiscal
agent is a national bank.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1631, effective July 15, 2010. -- Created
2005 Ky. Acts ch. 7, sec. 9, effective March 1, 2005.
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