2011 Kentucky Revised Statutes Subtitle 50. Workers' Compensation Self-Insured Groups 304.50.140 Suspension or revocation of certificate of filing -- Civil penalty -- Hearing and appeal -- Notification requirements and exceptions.
KY Rev Stat § 304.50.140 (1996 through Reg Sess) What's This?
304.50-140 Suspension or revocation of certificate of filing -- Civil penalty -Hearing and appeal -- Notification requirements and exceptions.
(1)
(2)
(3)
(4)
(5)
(6)
After a hearing or upon agreement by the workers’ compensation self-insured
group, the commissioner may suspend or revoke the certificate of filing of a selfinsured group, impose a civil penalty of up to ten thousand dollars (,000) per
violation, or both if the group:
(a) Operates significantly in contravention of its basic organizational document or
in a manner contrary to that described in and reasonably inferred from any
other information submitted under this subtitle, or administrative regulations
relating to this subtitle, unless amendments to the submissions have been filed
with and approved by the commissioner or there has been a significant and
adverse change in the management of the self-insured group;
(b) Or any person at the direction of the group advertises or merchandises its
services in an untrue, misrepresentative, misleading, deceptive, or unfair
manner, or engages in unfair or deceptive practices as defined in Subtitle 12 of
this chapter;
(c) Violates the provisions of this subtitle or administrative regulations adopted
thereunder;
(d) Obtains a certificate of filing by unfair or deceptive means;
(e) Misappropriates, converts illegally, withholds, or refuses to pay upon proper
demand any moneys that belong to a member, an employee of a member, or a
person otherwise entitled to such moneys by the group or its administrator; or
(f) Violated or failed to correct a violation of this subtitle or administrative
regulations promulgated under this subtitle within a reasonable time period
established by the commissioner in administrative regulations.
In addition, the commissioner may impose a civil penalty of up to ten thousand
dollars (,000) per day for continuing violations.
The commissioner shall conduct a hearing under this section in accordance with
Subtitle 2 of this chapter. The ruling of the commissioner may be appealed to
Franklin Circuit Court in accordance with KRS 304.2-370. The commissioner,
during the pendency of an appeal or request for a hearing, may utilize the security
deposit provided by the self-insured group to make payments of any workers'
compensation benefits currently due.
If the commissioner revokes a self-insured group's certification, the commissioner
shall immediately notify the Kentucky group self-insurance guaranty fund as
established in KRS 342.906(2).
When a certificate of filing of a self-insured group is suspended, the group shall not,
during the period of suspension, enroll any new participants or engage in any
advertising or solicitation.
If the certificate of filing of a self-insured group is revoked for reasons other than
hazardous financial condition, the group shall proceed, immediately following the
effective date of the order of revocation, to conclude its affairs and shall conduct no
further business, except as may be essential to the orderly conclusion of the affairs
(7)
of the group. The group shall engage in no further advertising or solicitation. The
commissioner may, by written order, prevent further operation of the self-insured
group if further operation is not deemed to be in the best interest of the members,
and the self-insured group's members will be afforded the greatest practical
opportunity to obtain workers’ compensation coverage elsewhere. If the
commissioner permits further operation, the workers’ compensation self-insured
group shall continue to collect the premiums and assessments required of its
members.
The commissioner, in his or her discretion and without advance notice or a hearing,
may suspend or revoke the certificate of filing of any workers’ compensation selfinsured group upon commencement of the following proceedings:
(a) Receivership;
(b) Conservatorship;
(c) Rehabilitation; or
(d) Other delinquency proceedings.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1646, effective July 15, 2010. -- Created
2005 Ky. Acts ch. 7, sec. 28, effective March 1, 2005.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
