2011 Kentucky Revised Statutes Subtitle 50. Workers' Compensation Self-Insured Groups 304.50.085 Operation of group by board of trustees -- Powers and duties -- Prohibited acts -- Contracts for administration of group.
KY Rev Stat § 304.50.085 (1996 through Reg Sess) What's This?
304.50-085 Operation of group by board of trustees -- Powers and duties -Prohibited acts -- Contracts for administration of group.
(1)
(2)
(3)
(4)
Each self-insured group shall be operated by a board of trustees. Except for a selfinsured group formed by governmental entities, the board of trustees for each selfinsured group shall consist of at least two (2) but not more than twenty (20) persons
selected in the manner prescribed in the bylaws of the self-insured group or other
laws of the Commonwealth.
The board of trustees shall:
(a) Be residents of Kentucky or officers of corporations authorized to do business
in Kentucky;
(b) Administer the operations of the workers’ compensation self-insured group
ensuring that there is adequate funding to pay compensation required by KRS
Chapter 342, that all claims are paid promptly and processed to conclusion,
and that all necessary precautions are taken to safeguard the assets of the
group;
(c) Maintain responsibility for all moneys collected or disbursed from the group;
(d) Maintain minutes of its meetings and make the minutes available to the
commissioner and group members;
(e) Designate an administrator to carry out the policies established by the board of
trustees and to provide day-to-day management of the self-insured group;
(f) Develop rates and collect premium and assessments; and
(g) Invest the self-insured group’s funds.
The board of trustees shall not:
(a) Extend credit to individual group members for payment of premiums or
assessments, except in accordance with payment plans filed with the
commissioner;
(b) Permit the loan of any moneys to or borrow any moneys from the self-insured
group or in the name of the group, except that a workers’ compensation selfinsured group formed by governmental entities may borrow moneys in the
name of the group; or
(c) Have a direct or indirect pecuniary interest in a service organization.
(a) The trustees may contract with a service organization, an administrator, or a
fiscal agent to carry out the administration of the workers’ compensation selfinsured group.
(b) A service organization and its employees and agents shall be duly licensed to
perform those functions for which a license is required under Kentucky law.
(c) A revolving fund of not more than twenty percent (20%) of estimated
premiums may be established for use by a service organization for the
payment of claims.
(5)
In its discretion, the workers’ compensation self-insured 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, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1637, effective July 15, 2010. -- Created
2005 Ky. Acts ch. 7, sec. 17, effective March 1, 2005.
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