2013 Kentucky Revised Statutes CHAPTER 164 - STATE UNIVERSITIES AND COLLEGES -- REGIONAL EDUCATION -- ARCHAEOLOGY 164.892 Basic coverage compensation fund -- Management and use -- Approval of settlements -- Disbursement of funds -- Annual contributions -- Investigation and certification of claims.
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164.892 Basic coverage compensation fund -- Management and use -Approval of settlements -- Disbursement of funds -- Annual contributions
-- Investigation and certification of claims.
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The board of trustees of the university may, at its election, establish a basic
coverage compensation fund for the benefit and protection from liability of itself
and its agents. Promptly after the board of trustees of said university has
elected to establish a basic coverage compensation fund, the university shall
pay to the State Treasurer the sum of three hundred fifty thousand dollars
($350,000) in the manner and within the time specified in subsection (3) of this
section.
Upon receipt of the initial payment of eighty-seven thousand five hundred
dollars ($87,500), the State Treasurer shall create a separate account to be
designated as the "Basic Coverage Compensation Fund, University of
Louisville" and there shall be credited to said fund the initial payment of
eighty-seven thousand five hundred dollars ($87,500), all income thereafter
earned from the investment of said fund and all contributions thereafter made
by the university to said fund. Unexpended and unencumbered balances in any
fund created hereunder shall be carried forward and be available for
expenditure in succeeding fiscal years notwithstanding the provisions of KRS
45.229 or any other provision of the Kentucky Revised Statutes. No portion of
said fund shall ever lapse to the general fund and income earned from the
investment of funds standing to the credit of said account shall accrue and be
credited thereto, notwithstanding the provisions of KRS 42.500 or any other
provision of the Kentucky Revised Statutes. Upon termination of said fund for
any reason, the balance therein shall revert to the university.
The university shall make an initial payment of eighty-seven thousand five
hundred dollars ($87,500) upon action by its board of trustees as described in
KRS 164.895. Annual payments of eighty-seven thousand five hundred dollars
($87,500) shall be made thereafter until the university has paid a total of three
hundred fifty thousand dollars ($350,000) into the "basic coverage
compensation fund, University of Louisville," except that when the university
commences the operation of a teaching hospital, the difference between the
total of all annual payments made into the basic coverage compensation fund
and the sum of three hundred fifty thousand dollars ($350,000) shall become
due and payable.
The funds held in any fund created under KRS 164.890 to 164.895 shall be
expended solely in payment of claims and judgments for liability arising in favor
of any patient from treatment performed or furnished, or treatment that should
have been performed or furnished by the university or its agents. The liabilities
which said fund shall be created to discharge are all liabilities from acts or
omissions to act which may have occurred since July 1, 1976, and which may
occur in the future and which no entity other than the university and its agents
is or will be obligated either by law or contract to pay and discharge.
No settlement shall be made of any claim for personal injury or death to any
claimant arising out of the furnishing or failure to furnish medical care by the
university and its agents, until and unless the board of trustees of the
university, or its duly designated agent or body has first approved of such
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settlement. The board of trustees of the university shall also have the right to
determine whether or not an appeal shall be taken from any judgment rendered
against it or its agents, when such claim is founded upon or arises out of the
furnishing or failure to furnish medical care. Provided, however, that if the
payment of a judgment would involve expenditures from appropriations of
general funds of the Commonwealth then such payment must also be
approved by the secretary, or his delegate.
Funds held in any account created hereunder may be disbursed by the
secretary only upon the written certification of the university, or its duly
designated agent, of the amount to be disbursed and the name of the person
or persons to whom such funds shall be paid.
In addition to the payments to said fund required to be made in subsection (3)
of this section, annual contributions to said fund shall be made by the university
in an amount which will be not less than one hundred fifty percent (150%) of
the average amounts actually paid in each year on medical malpractice claims
for the five (5) years next preceding the making of the annual contribution.
Provided, however, that if the university and the secretary shall at any time in
the future mutually determine, based on sound actuarial principles, that an
annual contribution in a lesser amount will not impair the adequacy of the fund
to satisfy existing and potential health care malpractice claims for a period of
one (1) year, then an annual contribution in such lesser amount as may be
determined may be made.
The university shall be solely responsible for the investigation and servicing of
all claims made against it arising out of medical malpractice and all costs,
expenses, and fees incurred in the investigation, servicing and defense of all
such claims shall be borne and paid by the university.
Claims and judgments certified to be paid by the university shall be paid in the
order received by the secretary. If the basic coverage compensation fund
created by contribution from the university shall at any time fail to have
sufficient funds to pay all such judgments, then they shall be paid out of the
excess coverage fund upon certification by the secretary. Said excess
coverage fund shall be expended only upon exhaustion of the basic coverage
compensation fund and any liability insurance from any source whatsoever.
Effective:July 13, 1984
History: Amended 1984 Ky. Acts ch. 111, sec. 103, effective July 13, 1984. -Amended 1982 Ky. Acts ch. 382, sec. 26, effective July 15, 1982; and ch. 450,
sec. 71, effective July 1, 1983. -- Amended 1978 Ky. Acts ch. 346, sec. 2,
effective June 17, 1978. -- Created 1976 (1st Extra. Sess.) Ky. Acts ch. 4,
sec. 3.
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